Latest news with #Production-LinkedIncentive
India Gazette
2 days ago
- Automotive
- India Gazette
Indian EV Industry being hurt by additional restrictions on rare earth minerals by China: Jefferies
New Delhi [India], June 6 (ANI): The EV companies in the country is already facing heat with China's supply restrictions on the rare earth metals, according to a report by Jefferies. The Jefferies report highlighted that several Indian companies are struggling to import magnets from China, which are crucial components in the production of EV motors. The report warned that once the current stock of these magnets runs out, motor production could be severely affected, putting the entire supply chain at risk. It said 'Based on our conversations with Indian companies, industry is facing a challenge in importing magnets from China and EV motor production could be at risk once the existing magnet inventories get exhausted'. Federation of Automobile Dealers Association (FADA) too have echoed the sentiment and in its monthly vehicle data release on Friday said 'Global supply-chain headwinds (rare-earth constraints in EV components, geopolitical tensions) may limit urban consumer sentiment and exert cost pressure.' To deal with the situation, companies are considering importing fully assembled motors from China. However, this option comes with challenges. Original Equipment Manufacturers (OEMs) would have to make major changes in their supply chains. Additionally, vehicles might require fresh homologation approvals to meet Indian standards. This shift could also lead to a drop in domestic value addition, which is essential to qualify for the government's Production-Linked Incentive (PLI) scheme. China had earlier, on April 4, imposed export controls on six heavy rare earth elements (REEs) and rare earth magnets. The country cited reasons like national security and international obligations such as non-proliferation. Although these curbs are not a complete ban on exports for the auto sector, companies must now seek prior government approval before shipping these materials out of China. This adds uncertainty and delay in the supply process. The report also mentioned that the Indian government is aware of the growing risks. According to a Reuters report on Friday, India is in discussions with various companies to build long-term stockpiles of rare earth magnets. As part of this plan, Indian government is likely to offer fiscal incentives to promote domestic production of these crucial components. Contrary to their name, rare earth elements, especially the lighter ones, are not actually rare in the Earth's crust. But they are spread out in low concentrations, which makes extraction and processing difficult. The global supply chain for these elements is heavily dependent on China, which currently accounts for about 70 per cent of the world's mined REEs and roughly 90 per cent of refined production. China also produces nearly 90 per cent of the world's rare earth magnets, especially the heavy rare earths. With China now increasing its restrictions even further, the supply chain could face more disruptions in the coming months, posing a serious threat to India's EV sector. (ANI)
Time of India
2 days ago
- Automotive
- Time of India
Rare Earth crunch: China's export curbs threaten India's EV motor supply chain
India's electric vehicle (EV) sector is staring at a potential supply chain crisis as China's tightening export controls on rare earth magnets threaten to disrupt the production of critical EV components, according to a recent Jefferies report. The report highlights that several Indian companies are struggling to import magnets — crucial for EV motors — from China, which dominates over 90 per cent of the world's magnet supply. With existing inventories depleting fast, Indian manufacturers fear a severe disruption in motor production, potentially stalling the growth of the EV sector. 'Industry is facing a challenge in importing magnets from China, and EV motor production could be at risk once existing inventories are exhausted,' the report stated. Supply Risk Spreads Across Sector The Federation of Automobile Dealers Associations (FADA) echoed similar concerns in its monthly vehicle sales update. It warned that supply-chain headwinds, such as rare earth constraints and global geopolitical tensions, are dampening urban consumer sentiment and pushing up input costs. To mitigate the shortfall, some Indian OEMs are exploring the possibility of importing fully assembled motors from China. However, this alternative is fraught with challenges — including major supply chain reconfiguration, potential loss of domestic value addition, and the need for fresh homologation approvals under Indian regulatory norms. This could jeopardise eligibility for Production-Linked Incentive (PLI) schemes. Government Steps In In response, the Indian government is reportedly in talks with industry stakeholders to build strategic stockpiles of rare earth magnets. Fiscal incentives are also being considered to encourage domestic production of these vital components, according to a Reuters report. While rare earth elements (REEs) are not geologically scarce, their concentration and refining complexity make supply highly dependent on China. As of now, China controls nearly 70 per cent of global REE mining and 90 per cent of refining and magnet production. With export approvals now required even for automotive-grade magnets, China's restrictions — announced in April citing national security — are already adding uncertainty and delay in procurement. If disruptions intensify, India's EV transition could be slowed significantly in the coming months.
Time of India
2 days ago
- Automotive
- Time of India
EV supply chain jolted: India struggles to import magnets amid China curbs; Jefferies flags looming risk
A widening supply gap for rare earth magnets is threatening to disrupt India's electric vehicle manufacturing, with a Jefferies report warning that domestic firms may soon hit a dead-end unless alternative sourcing or stockpiling solutions are found. Several Indian EV makers are reportedly struggling to secure magnet imports from China, which are essential for producing EV motors. The issue has worsened since China imposed fresh export restrictions on key rare earth materials. The Jefferies note cautioned that once existing magnet inventories are exhausted, motor production may face a serious setback, according to ANI. 'Based on our conversations with Indian companies, industry is facing a challenge in importing magnets from China and EV motor production could be at risk once the existing magnet inventories get exhausted,' the report stated. The Federation of Automobile Dealers Association (FADA), in its latest monthly vehicle data release, also raised concern. 'Global supply-chain headwinds (rare-earth constraints in EV components, geopolitical tensions) may limit urban consumer sentiment and exert cost pressure,' FADA noted. To manage the crisis, some companies are considering importing fully assembled motors directly from China. However, this route brings significant challenges, including changes to the supply chain architecture and the need for fresh homologation approvals for vehicles to comply with Indian regulatory norms. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sete Lagoas: Quanto vale a sua casa? Descubra agora! Valor da casa | Anúncios de pesquisa Saiba Mais Undo Moreover, shifting to fully built units could weaken the domestic value addition required under the government's Production-Linked Incentive (PLI) scheme, potentially affecting company eligibility for subsidies. On April 4, China imposed export controls on six heavy rare earth elements (REEs) and rare earth magnets, citing national security and international commitments such as non-proliferation. While not a complete ban, the new rule requires companies to seek prior Chinese government approval before exporting these materials, adding delays and uncertainty. The report also indicated that the Indian government is actively exploring solutions. Citing a Reuters update, it noted that discussions are underway with private players to build long-term stockpiles of rare earth magnets. Fiscal incentives may be offered to support local production of these critical components. Though termed "rare," these elements—especially lighter ones—are relatively abundant but difficult to extract due to their dispersed presence in the Earth's crust. This makes their processing resource-intensive. The global supply chain for rare earths remains heavily dependent on China, which controls around 70% of mined REEs and nearly 90% of the refined output. It also dominates magnet manufacturing, especially in the heavy rare earth segment. With new controls in place and more restrictions looming, the risk of further disruption remains high—posing a significant threat to India's fast-growing EV industry. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
2 days ago
- Automotive
- Economic Times
Indian EV Industry being hurt by additional restrictions on rare earth minerals by China: Jefferies
Indian EV companies are facing challenges due to China's restrictions on rare earth metal exports. Importing magnets, crucial for EV motors, has become difficult. Companies might consider importing fully assembled motors, but this poses new challenges. The Indian government is exploring options like building stockpiles and offering incentives for domestic production. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The EV companies in the country is already facing heat with China's supply restrictions on the rare earth metals, according to a report by Jefferies report highlighted that several Indian companies are struggling to import magnets from China, which are crucial components in the production of EV report warned that once the current stock of these magnets runs out, motor production could be severely affected, putting the entire supply chain at risk It said "Based on our conversations with Indian companies, industry is facing a challenge in importing magnets from China and EV motor production could be at risk once the existing magnet inventories get exhausted".Federation of Automobile Dealers Association (FADA) too have echoed the sentiment and in its monthly vehicle data release on Friday said "Global supply-chain headwinds (rare-earth constraints in EV components, geopolitical tensions) may limit urban consumer sentiment and exert cost pressure."To deal with the situation, companies are considering importing fully assembled motors from China. However, this option comes with challenges. Original Equipment Manufacturers (OEMs) would have to make major changes in their supply vehicles might require fresh homologation approvals to meet Indian standards. This shift could also lead to a drop in domestic value addition, which is essential to qualify for the government's Production-Linked Incentive (PLI) had earlier, on April 4, imposed export controls on six heavy rare earth elements (REEs) and rare earth magnets. The country cited reasons like national security and international obligations such as these curbs are not a complete ban on exports for the auto sector, companies must now seek prior government approval before shipping these materials out of China. This adds uncertainty and delay in the supply report also mentioned that the Indian government is aware of the growing to a Reuters report on Friday, India is in discussions with various companies to build long-term stockpiles of rare earth magnets. As part of this plan, Indian government is likely to offer fiscal incentives to promote domestic production of these crucial to their name, rare earth elements, especially the lighter ones, are not actually rare in the Earth's crust. But they are spread out in low concentrations, which makes extraction and processing global supply chain for these elements is heavily dependent on China, which currently accounts for about 70 per cent of the world's mined REEs and roughly 90 per cent of refined production. China also produces nearly 90 per cent of the world's rare earth magnets, especially the heavy rare China now increasing its restrictions even further, the supply chain could face more disruptions in the coming months, posing a serious threat to India's EV sector.
Time of India
2 days ago
- Automotive
- Time of India
Indian EV Industry being hurt by additional restrictions on rare earth minerals by China: Jefferies
The EV companies in the country is already facing heat with China's supply restrictions on the rare earth metals, according to a report by Jefferies. The Jefferies report highlighted that several Indian companies are struggling to import magnets from China, which are crucial components in the production of EV motors. The report warned that once the current stock of these magnets runs out, motor production could be severely affected, putting the entire supply chain at risk . Play Video Play Skip Backward Skip Forward Mute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dukung Orang Terkasih Menghadapi Limfoma: Mulai Di Sini Limfoma Baca Undo It said "Based on our conversations with Indian companies, industry is facing a challenge in importing magnets from China and EV motor production could be at risk once the existing magnet inventories get exhausted". Federation of Automobile Dealers Association (FADA) too have echoed the sentiment and in its monthly vehicle data release on Friday said "Global supply-chain headwinds (rare-earth constraints in EV components, geopolitical tensions) may limit urban consumer sentiment and exert cost pressure." Live Events To deal with the situation, companies are considering importing fully assembled motors from China. However, this option comes with challenges. Original Equipment Manufacturers (OEMs) would have to make major changes in their supply chains. Additionally, vehicles might require fresh homologation approvals to meet Indian standards. This shift could also lead to a drop in domestic value addition, which is essential to qualify for the government's Production-Linked Incentive (PLI) scheme. China had earlier, on April 4, imposed export controls on six heavy rare earth elements (REEs) and rare earth magnets. The country cited reasons like national security and international obligations such as non-proliferation. Although these curbs are not a complete ban on exports for the auto sector, companies must now seek prior government approval before shipping these materials out of China. This adds uncertainty and delay in the supply process. The report also mentioned that the Indian government is aware of the growing risks. According to a Reuters report on Friday, India is in discussions with various companies to build long-term stockpiles of rare earth magnets. As part of this plan, Indian government is likely to offer fiscal incentives to promote domestic production of these crucial components. Contrary to their name, rare earth elements, especially the lighter ones, are not actually rare in the Earth's crust. But they are spread out in low concentrations, which makes extraction and processing difficult. The global supply chain for these elements is heavily dependent on China, which currently accounts for about 70 per cent of the world's mined REEs and roughly 90 per cent of refined production. China also produces nearly 90 per cent of the world's rare earth magnets, especially the heavy rare earths. With China now increasing its restrictions even further, the supply chain could face more disruptions in the coming months, posing a serious threat to India's EV sector.
