Produced by: Mohsin Shaikh
China controls 90% of the world’s rare earth magnets—and now it’s tightening the tap. For India’s EV and electronics industries, that’s a looming disaster.
Shipments to India are stalled at Chinese ports as new export rules demand end-use disclosures. No license, no magnet—and time is running out.
Without neodymium magnets, India’s electric vehicle ambitions are on thin ice. Some automakers warn they have just weeks of inventory left.
Smartphones, wind turbines, fighter jets—rare earth magnets are in everything. India’s import addiction could trigger a tech production standstill.
India imported nearly 900 tonnes of magnets in FY25—but kept little to no inventory. Now the just-in-time model looks dangerously outdated.
Alternatives to neodymium magnets exist, but they’re bulkier, weaker, and not fit for high-performance tech. Substitutes won’t save the supply chain.
India wants to make its own magnets—but building the capacity could take years. In the meantime, global dependence on China remains ironclad.
Indian auto firms are lobbying Chinese authorities to fast-track shipments. A single bottleneck is now a national business crisis.
China’s rare earth grip could derail India’s “Atmanirbhar Bharat” push. For EVs, defense, and exports, it’s a race against magnetic time.