India’s ambitions for electric vehicles (EV) hit roadblocks due to Chinese curbs on the export of rare countries that include alloys, mixtures and magnets. These components are difficult and expensive for extraction, which also causes significant environmental costs.
Development comes at a time when the Indian government is strongly pushing the EV sector in the country by providing incentives and allocation in the budget of 2025 to strengthen the domestic production of these vehicles and promote e-mobility.
Why did China set out the exports of rare soils?
The decision is considered to be a direct response to US restrictions for Chinese technology, especially the semiconductor industry.
The Chinese step also emphasizes the dominance of the country in the critical mineral industry and is considered a lever effect in the continuous trade war with US President Donald Trump.
China’s decision to suspend the exports of a wide range of rare countries and related magnets were disrupted by the supply chains of cars, airlines and airlines, semiconductor companies and military suppliers around the world.
How does it affect India?
India depends on imports for rare soil magnets – a small but vital part for the production of ev. In FY25 the country imported 870 tons of these magnets worth £306 crore, he reported economic times.
MoneyControl said China is about 70 percent of global metal mining of rare countries and almost 90 % of its production, making export curbs an urgent problem for the EV industry. Automotive manufacturers may have to hand over increased costs to consumers and increase costs by up to 8 %.
Indian vehicle manufacturers must now self-contain the final use of magnets, which is the only option to clean the shipments. The long process can only be approved by the Chinese embassy. About 30 applications were reportedly filed through the Indian side, but still waiting for Chinese check -in, MoneyControl said.
How did the automatic sector respond to the messages?
Indian car manufacturers (Siam) caused concern with the government and warned that lower magnet stocks could cause delay in production.
In response to this, the Indian government is allegedly considering sending the delegation of the automotive industry leaders to Beijing to seek a resolution.
(Tagstotranslate) electric vehicle
