Overview
- Since April, Chinese authorities have required exporters to obtain licenses and end-use certificates for rare earth magnets, causing approvals to trickle in and shipments to halve.
- TVS Motor and Bajaj Auto warn that shortages could force electric vehicle production halts or price hikes by June or July, while Maruti Suzuki sees no immediate disruption.
- Germany’s auto lobby VDA cautions that slow export license approvals and customs delays threaten assembly lines at Volkswagen, Mercedes-Benz and BMW.
- Industry and diplomatic delegations from Japan, India, Europe and the U.S. Trade Representative’s office are seeking urgent talks with China’s Ministry of Commerce to expedite clearances.
- Automakers and governments are exploring alternative supply chains and investing in domestic rare earth processing projects in the U.S., India and elsewhere to reduce reliance on Chinese magnets.