Production of traction motors declined by 7.2%, a sharp reversal from the 12.8% growth seen last year.
21 Jan 2026 | 252 Views | By Shahkar Abidi
While the automotive industry has focused heavily on battery mineral inflation, a silent price creep in high-intensity motor magnets is creating a new bottleneck for electric vehicle (EV) manufacturers. According to the latest SIAM commodity monitor, the price of magnet (GD–NdFeB scrap), the lifeblood of modern electric motors, hit a ...
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While the automotive industry has focused heavily on battery mineral inflation, a silent price creep in high-intensity motor magnets is creating a new bottleneck for electric vehicle (EV) manufacturers. According to the latest SIAM commodity monitor, the price of magnet (GD–NdFeB scrap), the lifeblood of modern electric motors, hit a new peak in December 2025.
Data from the SIAM commodity tracker for December 2025 reveal a steady upward trajectory. The average price for these magnets reached $12.47 per kilogram, representing a 9% increase year-on-year. More concerning for procurement teams is that this figure is 1% higher than the previous month and marks the highest level witnessed in the last 12 months. In an industry where margins are razor-thin, this sustained peak suggests that the “easy” phase of EV component sourcing may be over.
The impact is most visible in the production of electric propulsion motors, technically known as traction and PMAC motors. Despite the essential nature of these components, the industry is seeing a significant output slump. Production of traction motors declined by 7.2%, a sharp reversal from the 12.8% growth seen last year. Even more dramatic is the 30.2% crash in PMAC motor production, which had previously been growing at 5.6%.
This magnetic squeeze is exacerbated by India’s heavy reliance on a handful of global suppliers. The industry remains tethered to imports, primarily from China ($0.78 million), the USA ($0.92 million), and Germany ($0.89 million). As battery production continues to rise by 13.2%, the mismatch between increasing battery supply and declining motor production, driven by record-high magnet costs, threatens to stall the momentum of the EV transition. For the automotive sector, securing a stable, low-cost supply of these minerals is no longer just a strategy; it is a necessity for survival.