Building India’s rare earth magnet ecosystem: A strategic imperative

In April 2025, China imposed strict controls on seven key rare earth elements (REEs) used in high-performance magnets, accounting for roughly 70 percent of global REE production and 90 percent of processing capacity.

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This move sent shockwaves through international supply chains, leaving industries from electronics to automotive scrambling for alternatives. India relies heavily on Chinese REE imports. With existing stocks gradually depleting, electric-vehicle, hybrid and even internal-combustion engine production could face slowdowns as early as July 2025, particularly for premium models that depend on advanced magnet technologies. To cope, automakers may have to pivot toward more affordable mid-range or entrylevel vehicles.