Uno Minda Clarifies No Board-Level Proposal on Rare Earth Magnet Production

Uno Minda Ltd. has officially stated that no proposal regarding rare earth magnet manufacturing has been presented to its Board of Directors, despite recent media speculation suggesting potential collaboration with Mahindra & Mahindra. The clarification comes amid heightened industry interest in localizing magnet production to reduce dependence on Chinese imports.

 

Key highlights:

 

Uno Minda confirmed that while it maintains strategic supplier relationships, no formal plan or investment proposal on rare earth magnets has reached board-level consideration.

The statement follows reports that Mahindra and Uno Minda were exploring domestic magnet manufacturing in response to 

 

Chinese export restrictions.

Mahindra also issued a similar clarification, denying any ongoing discussions or collaboration plans with Uno Minda on rare earth production.

 

Industry backdrop:

China currently supplies nearly 90 percent of the world’s rare earth magnets, which are critical for electric vehicles, electronics, and defense systems.

India has the fifth-largest reserves of rare earth minerals, but domestic processing remains limited and tightly regulated by IREL, a government-owned entity.

The Indian government is considering a ₹1,345 crore incentive scheme to promote local magnet manufacturing and build strategic stockpiles.

 

Market implications:

Uno Minda’s clarification helps temper speculative investor sentiment and reinforces its commitment to transparent disclosures under SEBI norms.

While the company remains open to evaluating strategic opportunities, no material developments have occurred that warrant regulatory filings.

 

Sources: Autocar Professional, Business Standard, Economic Times, 5paisa, Projects Today.