This development follows industry concerns about supply disruptions, as several companies flagged informal restrictions by China on rare earth exports. In response, the government is reportedly considering a Rs 1,345 crore incentive scheme to support domestic rare-earth magnet manufacturing and may relax motor import norms to mitigate production risks in the automotive sector.

GMDC's board will consider Q1 results on 25 July 2025. On a consolidated basis, GMDC's net profit rose 20.82% to Rs 226.22 crore while net sales rose 4.80% to Rs 786.28 crore in Q4 March 2025 over Q4 March 2024.

GMDC is India's second-largest Lignite-producing company and top merchant seller of Lignite. It is a State Public Undertaking of the Government of Gujarat. The company is engaged in mining lignite from deposit-rich areas across the state, company markets it to various high-growth industries, including textiles, chemicals, ceramics, bricks and captive power.