An Indian electric vehicle manufacturer is grappling with a critical shortage of rare earth metals following recent export restrictions imposed by China, raising concerns over supply chain vulnerabilities in the country’s clean mobility sector.
The company, which has not been named, reportedly depends heavily on imports of rare earth elements like neodymium and dysprosium key materials used in electric motors and battery systems. China, which dominates the global supply of these metals, tightened its export controls citing national security concerns.
Industry sources revealed that the supply disruption is already affecting production timelines and component availability, especially for high-performance EV models. The uncertainty has triggered alarm among other domestic EV players who share similar sourcing dependencies.
The Indian government has acknowledged the risk and is exploring alternative strategies, including partnerships with countries like Australia and the U.S., as well as investing in local exploration and recycling of rare earth materials.
Experts say the situation underscores the urgent need for India to develop a self-reliant ecosystem for critical minerals to support its EV ambitions and reduce geopolitical risks in future supply chains.
As India pushes forward with its electric mobility goals, the rare earth shortage could serve as a wake-up call for diversifying resources and accelerating domestic capabilities in strategic technologies.
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