China trapped by its own ‘tricks’: Rare earth ban backfires on…, has it affected India?

China, which is the largest producer of rare earth elements, has imposed a ban on rare earths. Now, the ban has started affecting its own companies.

Jul 11, 2025 - 12:30
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China trapped by its own ‘tricks’: Rare earth ban backfires on…, has it affected India?

Beijing: The ban, which China has imposed on uncommon earth aspects, would maybe emerge as an enormous verbalize for its agree with companies. Chinese companies are additionally feeling the warmth of the ban and no longer getting the uncommon earths. China’s role in uncommon earth aspects is terribly foremost, because it is the arena’s greatest uncommon earth producer and processor. The nation alone offers 60 to 70 p.c of the arena’s offer. China is additionally guilty for 90 p.c of the uncommon earths processing. Notably, 90 p.c of the uncommon earth aspects in India are imported from China. On the choice hand, the ban has now raised concerns for Indian automobile companies and corporations connected to China.

Why Is The Uncommon Earth Ban Affecting Indian As Neatly As Chinese Companies?

JSW MG Motor India, in which China has some stakes, said that the non-availability of uncommon earths has began affecting the corporate as noteworthy as other Indian auto companies. As per a characterize by Autocar Mavens, JSW MG Motors managing director Anurag Mehrotra said that the Beijing’s connection with SAIC Motors doesn’t give them any advantage, and they also're additionally facing the scarcity of uncommon earth aspects.

Notably, China’s reveal-owned company SAIC Motors owns MG Motor, which is a British automobile brand. The corporate bought MG Motor in 2007 following the receive of Nanjing Automobile Corporation, which had purchased the corporate from the defunct MG Rover Neighborhood.

Is There A Major Supply Wretchedness?

In step with MG Motors officers, the corporate is preserving an glance on the ache and, as of now, no longer facing a first-rate offer verbalize. On the choice hand, Mehrotra warned that the steady verbalize for the aur industry will reach within the approaching months. He instructed that the corporate is getting the part that it had ordered in April. The JSW MG Motors managing director said that the verbalize of uncommon earth is no longer puny to electric vehicles, but the uncommon earth magnets may have an effect on the petrol-diesel vehicles. Uncommon earth magnets are additionally outmoded to originate aspects of petrol-diesel vehicles.

Will MG Motor’s Production Quit In Coming Months?

Currently, there's now not any major disruption within the manufacturing but the corporate is monitoring the ache. The verbalize has been raised at the industry level, and the corporate’s affiliation is working closely with the authorities.

What Is The Affect Of Uncommon Earth Scarcity On Indian Companies?

India’s electric two-wheeler makers are feeling the warmth from a rising shortage of uncommon earth magnets, which is a foremost verbalize in EVs. Major avid gamers care for Ather Vitality, Bajaj Auto, and TVS Motor have warned that their manufacturing will be impacted due to China’s export restrictions.

With offers running low, companies within the intervening time are scaling motivate. As per a characterize by the Financial Cases characterize, Bajaj Auto plans to cleave its manufacturing ability by round 50 p.c. Ather Vitality may elevate out the identical by lowering its output by 8–10 p.c.

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