Archive · 14 Jun 2025
China Curbs Spur India's EV Policy Adjustments
China has restricted the export of certain special minerals used in making electric cars.
This is causing problems for Indian companies that make EVs.
To help them, the Indian government might make it easier for these companies to use parts from other countries.
The government has told companies to buy complete motor parts instead of making them.
The companies are also talking to the government about how to deal with these new rules.
One company, Ola Electric, is working on making motors that don't need these special minerals to avoid relying on China.
China imposed export restrictions on rare earth elements, impacting Indian automakers.
India may relax EV localization mandates under the PLI scheme due to the restrictions.
Automakers are advised to import fully built motors to bypass the export curbs.
SIAM has consulted with the government on easing localization mandates.
Ola Electric aims to introduce rare-earth-free motors by the end of 2025.
- Who
- Indian automakers, SIAM, the Indian government, and Ola Electric.
- What
- China's export restrictions on rare earth elements may lead to changes in India's EV manufacturing policies.
- When
- China's restrictions began in April this year.
- Where
- India and China, with implications for the global EV market.
- Why
- To mitigate the impact of China's export restrictions on India's EV industry and ensure supply.
Current Situation
Future Prospects
Impact of China's Export Curbs
Current Situation
Automakers face increased costs and supply chain hurdles.
Future Prospects
Government potentially relaxes localization rules.
- Affected Elements
- Seven rare earth elements and magnets
- Restriction Initiator
- China
- Impact
- Increased EV costs and supply chain challenges
- Government Response
- Potential relaxation of localization mandates
- Automaker Response
- Importing fully built motors/assemblies
- Key Player
- Ola Electric
Sources
Top power authority mulls sops for critical components as China curbs rare earth supply
India moves to conserve its rare earths, seeks halt to Japan exports, sources say
India considers temporary export curbs on rare earth elements, amid global supply crisis, especially for EV components
India makes changes to rules on Rare Earth Mining as global demand soars
Govt to incentivise firms manufacturing critical power equipment to cut China reliance
Rare earth inventories may run dry by mid-July
India to reassess Rare Earth export agreement with Japan
