EV Supply Crisis- India's Electric Dreams Hit a Roadblock

India's electric vehicle manufacturing sector is struggling to obtain the necessary EV motor parts due to China's suspension of new exports of rare earth magnets since the beginning of April. These magnets, which contain elements such as dysprosium, terbium, and samarium, are crucial components for permanent magnet synchronous motors used in EVs.

The slowdown is already hurting work plans across the sector. Bajaj Auto has halted production briefly, while Ather Energy and TVS Motor are planning for possible suspension of manufacturing due to limited stocks. India gets about 80% of its rare earth magnets from China. This makes the country very sensitive to export bans.

The Indian government is exploring a production-linked incentive plan to boost domestic rare earth magnet manufacturing, alongside efforts to increase mining and private sector involvement in the discovery of important minerals. However, these long-term fixes will take time to materialise, which means India's EV environment is currently at risk.

Without a quick resolution, India's ambitious green mobility goals could face significant temporary setbacks.

Source: Motorbeam