China’s recent restrictions on rare earth magnet exports are disrupting global electric vehicle (EV) manufacturing, with India among the countries facing significant challenges.
Rare earth magnets, critical for EV motors, wind turbines, and other clean energy technologies, are largely dominated by Chinese supply chains. With Beijing tightening export controls to safeguard domestic industries, automakers and component manufacturers worldwide are struggling to secure essential raw materials.
Industry experts warn that the move could increase production costs, slow down EV rollouts, and impact India’s ambitious clean mobility goals. Domestic EV manufacturers, heavily reliant on imports, may face supply shortages that hinder expansion plans.
The curbs also highlight the urgent need for India to diversify its supply sources and invest in developing local rare earth processing and magnet manufacturing capabilities. Policymakers are now exploring partnerships with countries like Australia and the U.S. to reduce dependence on China.
Analysts believe this geopolitical shift could accelerate India’s push for a self-reliant EV ecosystem but caution that building resilient supply chains will take time.
Click Here to get the latest EV news and exclusive updates from EV Mechanica on WhatsApp!