EV Makers Seek Centre’s Help as China Halts Magnet Exports

Some of India’s top electric vehicle (EV) manufacturers have approached the central government, asking for urgent help to secure the supply of rare earth elements (REEs)—especially magnets—needed for making electric motors. These magnets, like neodymium-iron-boron (NdFeB), are crucial for the performance and efficiency of EVs. 

India currently relies heavily on China for these magnets, as the country controls about 70–90% of the global supply. However, China has recently tightened its export rules. It is not releasing rare earth magnets unless certain strict conditions are met, including providing end-user certificates to show they will not be used for military purposes.

Policy Changes and Delays

Sources say the Chinese government wants written guarantees from importing countries—such as India—that the magnets will only be used for civilian purposes and will not be sold to third parties. These certificates must be signed off by India’s Ministry of External Affairs (MEA) and approved by the Chinese Embassy.

Because of these new rules, shipments from China have stopped. As a result, EV projects in India are being delayed, and prices of electric vehicles may rise if the situation continues.

Two of India’s top three car makers have already raised the issue during a recent ministry review meeting. Industry associations such as the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Component Manufacturers Association of India (ACMA) also attended, but no formal multi-stakeholder meeting has yet taken place.

Inventories Running Low 

Auto manufacturers have reportedly told the government that their magnet supplies may only last until the end of June. If new imports don’t come in soon, production lines could be affected.

SIAM has proposed that a dedicated agency be assigned to check and verify all import-related documents, including the end-user certificates. Once verified, these should be authenticated by the MEA. The industry wants a single point of contact in the government to handle this entire process smoothly.

Conclusion 

India’s EV transition may hit a bump if the rare earth magnet issue is not resolved quickly. Without an urgent policy response, ongoing projects could be delayed, costs could rise, and key national schemes may be affected.
 
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