Indian EV makers to face challenges as China stops supply of rare earth magnets to India

Indian electric vehicle (EV) and auto component manufacturers will soon face fresh production hurdles as China has restricted the export of rare earth magnets to India starting April 4, industry sources told CNBC-TV18.

These magnets are essential for traction motors and various components used in EVs and automobiles.

The move has prompted Indian automakers and component manufacturers to approach the Indian government for assistance, as the sudden restriction could disrupt supply chains and slow down EV production.

According to the new Chinese regulation, exporters will only supply magnets to companies that submit an end-user certificate in a prescribed format.

The Chinese government is demanding end-user certificates for releasing any exports of rare earth magnets.

The certificate must also be authorised by both the Indian Ministry of External Affairs and the Chinese Embassy, and they should confirm the magnets won’t be used in weapons or transferred to third parties.