Rare earth magnets: India hurries to set up new supply chains for key EV component as China curbs exports

India is urgently working to establish alternative rare earth magnet supply chains with five strategic partner nations Vietnam, Indonesia, Japan, the US, and Russia as China tightens its export control on this critical electronic supply chain component. With the rare earth magnets being essential for electric vehicle (EV) production and clean energy technologies, this supply chain disruption poses a major threat to India's automotive ambitions and future supply chain tracking capabilities.

Currently, India imports approximately 809 tonnes of rare earth magnets annually, primarily from China. As the country advances its supply chain management development program and strengthens its digital supply chain infrastructure, securing a stable and diversified source of rare earth magnets has become imperative.

Parallel dialogues are also underway with Chinese Embassy officials to maintain temporary access to these components while new SCM innovations in India are explored. This effort is part of India's broader strategy to future-proof its supply and chain management systems and participate in global chain supply management ecosystems.

With the Future of Supply Chain Management being driven by geopolitical shifts and technological advancement, this move is expected to be a key discussion point at the upcoming Supply Chain Leadership Summit and other Best Supply Chain Events in India.

India’s proactive steps in securing critical materials reflect its growing emphasis on electronic supply chain management, supply chain financing, and robust supply chain demand planning to ensure a resilient and self-reliant industrial future.