Daybreak Inside India's rare earth magnet emergency and how EV makers are coping
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Jul 3, 2025 Explore the crucial role of rare-earth magnets in electric vehicles and the supply chain chaos stemming from China's export restrictions. Indian manufacturers face mounting challenges as production cuts loom and bureaucratic hurdles complicate imports. Discover how companies like Maruti Suzuki and Mahindra are responding to this crisis with innovative strategies and workarounds. Delve into the geopolitical implications of rare-earth dependency and the future of the EV industry in India as it navigates these tumultuous waters.
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China's Magnet Monopoly Holds EVs Hostage
- Electric vehicles rely on rare earth magnets, mostly sourced from China, which now blocks shipments to India.
- This chokehold is a geopolitical move, not just a supply issue, causing drastic production cuts in Indian EV makers.
Indian EV Makers Innovate Around Shortage
- Mahindra imports pre-assembled motors from a French partner to avoid the magnet shortage.
- Omega Seiki redesigned their motors entirely to eliminate rare earth magnets.
Complex Chinese Export Controls Stall Imports
- Importing rare earth magnets requires a complex, opaque approval process involving multiple Chinese authorities.
- Many Indian firms face lengthy delays and rejections, with no clear timeline for resolution.