Archive · 8 Jun 2025
India Races to Secure Magnet Supply Chains as China Curbs Exports
India is having trouble getting important magnets from China, needed for making electric cars.
China has stopped or slowed down selling these magnets to India.
India is now trying to get them from other countries like Vietnam, Indonesia, the US, and Russia.
They are also talking to China to fix the problem, but the car companies in India may run out of the magnets by the end of June, which would affect production.
India is seeking alternative supply chains for rare earth magnets due to China’s export restrictions.
Discussions are underway with Vietnam, Indonesia, Japan, the US, and Russia.
China has rejected or delayed export permissions for Indian companies.
Supplies to Indian automakers are expected to last until the end of June.
India is also attempting diplomatic solutions, including talks with the Chinese government.
- Who
- Indian automakers, Chinese government, Indian government, and various international suppliers.
- What
- India is seeking alternate sources for rare earth magnets due to China's export restrictions, essential for EV production.
- When
- Since April 4, 2024, with supplies expected to run out by the end of June.
- Where
- China, India, Vietnam, Indonesia, Japan, US, Russia
- Why
- China imposed export restrictions, impacting India's EV production due to a supply shortage of rare earth magnets.
China's Export Restrictions
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Supply Chain Stability
China's Export Restrictions
China's restrictions have created a supply chain crisis for Indian automakers, hindering EV production.
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- Main Issue
- China's export restrictions on rare earth magnets
- Countries Involved
- China, India, Vietnam, Indonesia, Japan, US, Russia
- Estimated Time to Establish New Supply Chains
- 45-60 days
- Affected Industry
- Automotive (EVs)
- Indian Government Actions
- Diplomatic efforts, exploring alternate supply chains
- Magnet Import Quantity
- Approximately 809 tonnes
Sources
China’s restriction on rare earth magnets may impact smartwatches, TWS market too
Auto industry seeks govt help in expediting approvals for rare earth magnets import from China
Will Your Next Car Or EV Get Delayed? China’s Rare Earth Curbs Trigger Auto Supply Crunch
Auto industry seeks govt help in expediting approvals for rare earth magnets import from China
Automakers seek Modi govt’s help in expediting approvals from China for rare earth magnet imports