Mahindra & Mahindra have issued an official statement clearing any reports suggesting that it has partnered with Uno Minda for the production of rare earth materials. The automobile manufacturer denied an Economic Times report on July 10 stating that both the companies are looking to collaborate in the local production of these critical minerals.
Mahindra has issued a statement in the National Stock Exchange of India Limited, the Luxembourg Stock Exchange and the London Stock Exchange. It read, “The company evaluates various strategic opportunities in the ordinary course for growth and expansion of its business. At this stage, there is no material event/information that requires disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”). The company will make appropriate disclosures in compliance with applicable laws, as and when required.”
The notification, which is signed by Divya Mascarenhas, Interim Company Secretary, further read, “The company has a valued relationship with Uno Minda as a supplier. However, it has no discussions ongoing or plans to collaborate with Uno Minda on rare earth production.”
In April, Beijing imposed a set of new rules on the export of rare earth materials as a retaliation measure against US President Donald Trump’s tariffs on China. Last month, Mahindra had said that the new rules only affect those who import it as raw materials and not as a part of an assembled unit. At the moment, the company has the required inventory.
Speaking on the rare earth magnets’ potential crisis, Confederation of Indian Industry (CII) President Rajiv Memani said that it is a lot more serious a concern than how it’s seen.
The Government of India has proposed a scheme for domestic production of rare earth magnets, which has been sent for “interministerial consultations”. According to PTI, Kamran Rizvi, Secretary, Ministry of Heavy Industries, confirmed that the scheme has been circulated for interministerial consultations and later will be sent for a Union Cabinet approval. The Rs 1,345 crore proposal has received interest from Sona Comstar and Uno Minda, who supply parts to global and domestic automobile companies.
