China Restrictions Supply of Rare Earth Magnets Setback for Indian Ev Makers

China has created difficulties for the Indian EV market. China has stopped the supply of rare magnets used in electric vehicles, called Rare Earth Magnets, in India. Now these rare meanings cannot be imported from China. This export ban has come into force from 4 April 2025. China says that if India needs rare meanings, then suppliers will have to give a special certificate. Let us know what are rare meanings and why are these EV production so important?

China supplied rare rare meaning magnet

China has put a brake at the speed of India’s Electrical Vehicle Manufacturing Hub. The country has currently stopped supply of rare economy to India, which is very important to make EV and their components. CNBC tv18 of Report According to, the automobile and component manufacturers have now recommended the government to intervene in this matter. Suddenly, this ban will be a hindrance to the supply chain and EV production can be very slow.

What is China’s demand

China has also given the reason behind the closure of the supply of rare economy. China says that according to the new policy, the rare meanings will now be supplied to the countries that will provide the end-user certificate to the suppliers in the prescribed format. The Chinese government is now seeking a final-user certificate to release the export of rare economy magnets. Certificate should be supported by both the Indian Ministry of External Affairs and the Chinese Embassy. Importers will have to confirm that megates will not be used in weapons or no third party will be transferred.

Why rare earth magnets are so important for EV

Rare Earth Magnets plays an important role in the production of electrical vehicles. They have unique megatic strength and capacity. These megants are usually made from neodymium, iron, and boron. Megates are one of the most essential components of EV motors. They help in converting electric energy into mechanical speed and due to these, the loss of energy in this process is very low. Therefore, they are so important in creating EV.

Due to these, EV makers are able to make small, light and high capacity motor for electric vehicles. Having such motors increases the driving range of the vehicle and the overall performance of the vehicle is also improved. They also enhance the regional braking system. Since the demand for clean energy is increasing worldwide, the importance of these megants is also increasing continuously. But their global supply is very limited which is causing concern for the EV market.