New Delhi, June 30 -- Sona Comstar, India's leading importer of rare earth magnets, is set to begin domestic production of these critical components used in electric vehicles (EVs).

This move aligns with the government's push to incentivise local production and reduce dependency on China.

China currently dominates the global rare earth magnet market, producing around 90 per cent of the world's supply. Recent export restrictions imposed by China in April in response to US tariffs have forced governments and companies worldwide to seek alternative sources.

India, which has the world's third-largest car market and its fifth-largest reserves of rare earths, is working on a new programme to incentivise magnet production locally to wean off ...