Coimbatore industries in the EV sector expect problems because of magnet shortage

Coimbatore, with its emerging Electric Vehicle (EV) eco system, is expected to soon feel the impact of the shortage in availability of rare earth magnets that are used in the EVs.

Ramesh Muthuramalingam, Managing Director of Alphacraft, said the factories involved in manufacturing components for EVs are yet to feel the impact. However, it is reported that Indian firms may run out of rare earth magnet stocks by the middle of this month. The EV suppliers in Coimbatore will then feel the ripple effects of the magnet shortage.

The Micro, Small and Medium-scale companies here that make components for EVs are dependent on the larger magnet suppliers and any disruption upstream can potentially slow orders, shift production schedules, or raise costs.

China decided to restrict export of the magnets in April this year. “We have other sources as well. But, China dominates the field. Other sources such as the US, Australia, and Myanmar will either stop the supplies or ration it soon,” he said.

Barathan Kuppusamy, Chief Executive Officer of Ozotec Automobiles, said some of the EV manufacturers are importing magnets that are already assembled in the stampings. But, there are issues now in this regard.

Coimbatore District Small Industries Association treasurer P. Ponram said the companies involved in the EV sector do anticipate problems. “However, the impact will be less,” he said.

However, according to the Chief Executive Officer of Eco Dynaamic Equipments Vijayan Srinivasan, the companies in Coimbatore do not use the magnets in large volumes. Most of them use the CKDs and the requirement of the magnets is only in small volumes.