Overview

• China’s Ministry of Commerce imposed stricter licensing rules in April on rare earth alloys and permanent magnets, slowing exports of components vital to EV motors and systems.
• Indian electric vehicle manufacturers warn that pending export clearances could force production lines to halt by July without new supply shipments.
• Industry reports indicate that Beijing has issued temporary magnet export licenses to several U.S. automakers during ongoing tariff negotiations.
• High-level talks between Beijing, New Delhi and Brussels aim to unblock shipments and shift automotive supply chains away from Chinese rare earth dependence.
• Automakers and suppliers are investing in domestic rare earth projects and researching motor designs that reduce or eliminate magnet use.