India's rare earth magnets crisis: Future of EV sector
India's electric vehicle (EV) scene just hit a speed bump: China, the main supplier of rare earth magnets for EV motors, has tightened export rules. Since over 80% of these magnets come from China, Indian automakers are feeling the heat.
China now wants more paperwork for shipments
China now asks for detailed paperwork on how and where these magnets will be used, plus non-defense guarantees. This means longer wait times—at least 45 days—for shipments to get approved. Indian companies are already seeing delays, making it harder to keep up with production schedules.
Some carmakers planning for possible cutbacks starting July
If supply issues drag on, new EV launches could be pushed back and production might slow down. Some big carmakers are even planning for possible cutbacks starting July 2025. The government is considering diversifying supply sources and building strategic inventories to avoid future headaches—but that could mean pricier parts or scrambling to find new suppliers.
Rare earth magnets also used in regular vehicles
Rare earth magnets aren't just in fancy cars—they're also in things like power steering systems found in regular vehicles. With India aiming high on green mobility, any hiccup in getting these parts could make affordable and accessible EVs harder to come by for everyone.