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Hyundai Motor India stock climbed over 1% after reports suggested it is unlikely to face any near-term EV production disruption despite a global rare earth magnet shortage.
The deets: Hyundai is tapping into its global parent’s supply chain to secure rare earth magnets which are critical components for EV motors and other advanced auto systems.
The move comes as China’s tighter export rules have disrupted shipments to Indian manufacturers since April.
Good news: Hyundai’s parent company has reportedly stocked up enough inventory to keep production running through the rest of the year. That boosted investor confidence, sending the stock higher even as the broader market remained cautious.
Zoom out: the rare earth magnet supply crunch is a global issue.
China, which controls 90% of global supply, has made it mandatory for exporters to provide end-use certificates, slowing shipments.
