India pushes automakers to ditch rare-earth magnets, reduce Chinese dependence

Auto Nov 03, 2025

The Indian government is nudging automakers to invest in tech that skips rare-earth magnets—mainly to loosen the grip China has on these crucial materials.
With China handling over 90% of global rare earth processing, India's heavy industries ministry is tapping into a ₹50,000 crore research fund to back homegrown solutions.

Ola Electric is already on it

Early talks are already happening, and some companies like Ola Electric have started using motors that don't rely on rare-earth magnets, especially after China tightened exports.
There's also buzz about new incentives for making these magnets locally.
All in all, it's a move toward more self-reliant car tech and less dependence on Chinese supply chains.