EV makers seek govt intervention amidst rising concerns over Rare Earth Magnets availability

Neodymium-iron-boron (NdFeB) magnets
| Photo Credit:
Doug Kanter

Some of India’s top EV makers have reached out to the Centre – and associated line ministries – seeking necessary intervention to ensure continued supply of critical minerals, including Rare Earth Elements (REE), like magnets, from China. Supply restrictions by Asia’s largest economy are seen as a possible hiccup in India’s EV push, including a possible delay in the roll-out of flagship PM schemes on green mobility, sources in the know told businessline. 

Price rises of EVs are not ruled out either if shortages of supplies continue.

Rare earth magnets, particularly neodymium-iron-boron (NdFeB) magnets, are vital in EV manufacturing. They provide strong magnetic fields that are required for the high efficiency and performance of electric motors, including traction motors that drive EVs.

China is amongst the key suppliers of the item globally – 70-90 per cent dominance – and is reportedly seeking government guarantees that these critical mineral sources from them will not be used in weapon-making and be restricted for civilian usage only.

Two to three automakers – including India’s number two and three car maker – have, as recently as last week, raised the issue post a review meeting at one of the ministries. The meeting was attended by some of the auto-maker industry bodies too. 

Formal meeting with stakeholders is yet to happen. 

Last month, some of the EV makers reached out to another line ministry seeking continuity in supply of REEs, including these magnets. 

“Because technology has to come from China…. And currently things are not good. So projects are delayed as China is not transferring technology – amidst war and other rivalry, including trade barriers being put up against it,” an official aware said. 

Sources said, as per China’s new policy, rare earth magnets will be supplied to only those countries which provide end-user certificates to suppliers in the prescribed format.

Chinese government is not releasing any exports of rare earth magnets. The certificate must also be endorsed by both the Indian Ministry of External Affairs and the Chinese Embassy. The importers must confirm that the magnets will not be used in weapons or transferred to any third party.

SIAM suggestions 

Automotive manufacturers have reportedly pointed out that magnet inventories may last only until the end of June.  

Sources said, SIAM has already suggested a designated body to verify and validate the import documents and end-user certificates. Post verification, the MEA has to authenticate the notarised documents. And there needs to be a single point of contact to get things in order: 

Industry bodies like SIAM and ACMA did not respond to queries by businessline. Mails have also been sent to some car-markers, Tata Motors and Mahindra & Mahindra seeking their comments. 

Line ministries are yet to respond to queries. 

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Published on May 18, 2025