Rare-Earth Magnet Licensing Boosts India EV Supply Chain Resilience
In a significant boost for India’s electric vehicle segment, China has granted import licences for rare-earth magnets to four Indian companies: Continental India, DE Diamond Industries, Hitachi Magnetics (India), and Jay Ushin (India). These licences follow strict end-user certifications ensuring the material will not be diverted to the US or used for defence production.
The approvals mark China’s first clearances since it imposed stringent export controls in April, a move that had threatened supply chains for India’s auto manufacturers. China controls around 90 % of global rare-earth magnet output and roughly 70 % of rare-earth mining, making its role pivotal in ensuring availability.
In fiscal year 2024-25, India imported nearly 870 tonnes of these magnets, valued at approximately ₹306 crore. These neodymium-iron-boron magnets are a key component for electric motors, braking systems, and steering modules in EVs.
The move provides much-needed relief for India’s EV and automotive sectors, which had warned of production delays and cost escalations because of magnet shortages. At the same time, India is ramping up its domestic rare-earth processing capacity under the National Critical Mineral Mission and a ₹7,300 crore incentive scheme targeting annual production of 6,000 metric tonnes within seven years.
Editor’s View
The approval of these licences is a timely pivot for India’s electric vehicle ecosystem. The focus keyphrase “rare-earth magnet supply” underscores the critical nature of this component in modern EV manufacturing and its direct link to production continuity. For tyre manufacturers and ancillary automotive suppliers, this development matters because it signals smoother downstream demand, and anywhere motors, braking systems, and electronics are secured, tyre design and production will follow. The ability to maintain uninterrupted vehicle assembly means consistent tyre volumes and stability in the supply chain. It is a reminder that in automotive manufacturing, even components far from the wheel influence tyre-sector dynamics.
