China tight supply: India’s auto industry wants the government’s help on rare earth magnet imports; Major EV parts affected

New Delhi: The Indian Automobile Industry has urged the government to help the Chinese authorities help rapidly track the rapid track perceived approval from Chinese authorities to import rare earth magnet-key components used in electric motors and various car applications.According to PTI, industry sources revealed that many Indian suppliers have applied for approval through their local partners in China. But no permission has been given so far.China processes more than 90% of the world’s rare Earth magnets, which are widely used in parts such as speedometer, electric motors, e-accessories, electric water pumps, automatic transmission kits, speakers, sensors and engine ignition coils.Since 4 April, the Chinese government has imposed restrictions requiring special export licenses for seven rare earth elements and related magnets.In Japan, Suzuki Motor stopped Swift production due to these restrictions. Earlier last week, Senior Executive Officer of Maruti Suzuki India, Rahul Bharti said that China has requested a final-user certificate, which should be supported by the Government of India and should be approved by Chinese officials.“So this process is on and the industry is under discussion with the government,” he said.Rajat Mahajan, leader of the Automotive sector of Deloite India, exposed the deficiency as an important supply chain disruption, particularly impressed EVS. These magnets have high magnetic energy storage capacity, which is less forceful at high operating temperatures.“It has long been an R&D theme for the motor vehicle industry, but so far other magnetic materials have not seen large -scale commercial use in applications like EV,” they continued.Current EV production does not have enough rare earth magnets available for recycling to meet demands, Mahajan said, saying that it is not easy for vehicle manufacturers to quickly shift to separate powertrains or alternative materials.He said, “This situation is hopeful that it will be resolved through diplomatic channels, but if it continues, we can see a change towards Poratrain for the big OEM,” he further said.Srikumar Krishnamurthy, senior vice president of ICRA and co-group for corporate rating, said that rare earth magnets are required in many EV components such as electric motors, regenerative braking systems and power steering.Since China supplies about 90% of the world’s rare earth magnets, its recent export restrictions can greatly affect the EV industry. This can lead to high prices due to lack and even disrupting production programs.Krishnamurthy said, “The implications may involve disruption in the production program in the absence of inflation pressure (under high cost for rare earth magnets against the background of deficiency) or even a spontaneous supply of the same.” While car manufacturers are searching for ways to cut the dependence on Chinese supply, it is difficult to find immediate options.These rare earth materials include important ingredients such as Samaryium, Gadolinium, Terbium, Dysoprosium, and Luttium, which are used not only in EVS but also in smartphones and missile technology.