(MENAFN- KNN India) New Delhi, Oct 30 (KNN) India's automobile industry has begun talks with the government to simplify the process of importing rare earth magnets from China - a critical component for electric vehicle (EV) production.

Although Beijing hasn't officially banned exports, it has made the process highly restrictive and time-consuming, raising concerns about future shortages.

Neodymium-iron-boron (NdFeB) magnets are essential for EV motors, providing the strong magnetic fields that power vehicles efficiently.

They are also used in power steering, braking, and wiper systems. However, China dominates global production, leaving India heavily reliant on Chinese supply.

According to industry executives, Indian importers must now provide written assurances to Chinese suppliers confirming that these magnets will only be used in vehicles, not for defence purposes. The process involves approvals from several Indian departments before being cleared by Chinese authorities.

Additionally, China has begun demanding endorsements from local Indian bodies such as the Directorate General of Foreign Trade (DGFT) and authorisation from the Chinese Embassy - further slowing imports.

With inventories running low, carmakers fear upcoming shortages. Beijing has also urged companies to import complete electric motor assemblies instead of just magnets - a move that would require redesigning vehicles.

Reports suggest that while Volkswagen successfully lobbied to secure export permits, most Indian manufacturers are still waiting.

Though rare earth resources exist outside China, the country remains the global leader in refining and processing these materials.

Other nations, including Japan, are reviving their industries, but the U.S. and India remain dependent on Chinese exports.

Earlier this year, China also restricted the export of several rare earth metals and high-tech materials, tightening control over global supply chains amid trade tensions with the U.S.

(KNN Bureau)

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