China has tightened control over rare earth magnets, causing significant challenges for Indian car manufacturers. Existing stocks are expected to run out by early June, which could lead to serious problems and disruptions in the vehicle production industry.
Indian carmakers are facing delays in receiving rare earth magnets. Following China’s major export regulations, shipments of these components have been delayed. Manufacturers have warned that if supplies don’t return to normal, it could impact vehicle production.
According to a media report, a delegation from the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Component Manufacturers Association (ACMA) is preparing to visit China to discuss the issue with Chinese officials. The Indian government is also trying to resolve the matter diplomatically.
Neodymium-iron-boron (NdFeB) magnets are crucial for both electric and conventional vehicles. These magnets are used in various systems, including motors, steering, brakes, wipers, and audio equipment. Even a minor shortage of these magnets can disrupt assembly lines.
China’s Grip on Rare Earth Magnets
China produces 90% of the world’s rare earth magnets. However, the approval process has slowed down as a result of China requiring exporters to obtain government licences and detailed end-use certificates from buyers before shipping.
The Economic Times reports that many consignments for India are stuck at Chinese ports due to this rule. Meanwhile, European companies have secured export approvals, but Indian goods remain stranded.
