China to restrict rare earth exports: What it means

India Oct 09, 2025

China is tightening export rules on rare earth materials starting November 8, 2025.
This means Indian electric vehicle (EV) makers may face new hurdles getting key parts like lithium-ion batteries and rare earth magnets—essentials for building EVs, especially bigger ones like busses and trucks.

Why is this a problem for India?

China supplies about 90% of the world's rare earth magnets, including those made with heavy rare earths, so India's EV industry is heavily dependent on them.
With new export licenses and stricter rules, India could struggle to ramp up EV production, slowing down its shift to cleaner transport.
Plus, rare earths are vital for defense and renewable tech, making it even more important for India to find new sources or boost its own production.