Since April 4, China has limited its supply of magnets to India, according to industry sources.
As China has limited the supply of rare earth magnets, an essential component of electric vehicles, automakers and component manufacturers have asked the government to step in, according to a CNBC-TV18 story on April 25.
According to industry sources mentioned in the paper, China’s decision to limit the supply of the magnets, which are necessary for traction motors and other parts used in EVs and cars, from April 4 is probably going to cause supply chain disruptions and manufacturing delays.
Tech on Tips was unable to independently confirm the report.
In reaction to the US tariffs, China, which produces about 90% of the world’s rare earth minerals, limited exports of these elements early this month.
Magnets will only be provided to businesses that provide an end-user certificate in a specific format, under new Chinese laws.
The Chinese embassy and the ministry of external affairs must approve the certificate before importers can use it. According to the CNBC article, they must also verify that the magnets won’t be transferred to other parties or utilized in weapons.
China has cautioned nations against reaching a more comprehensive economic agreement with the US at its expense amid the trade battle.
In a recent Reuters story, Beijing’s commerce ministry was quoted as saying that it “will take countermeasures in a resolute and reciprocal manner” and that it will adamantly reject any party making a deal at China’s expense.
According to reports, a number of businesses are considering shifting some of their production from China to India as part of the ongoing trade war between the US and China.
A transfer to Indian beaches is more cost-effective because the US has imposed a 145 percent tariff on Chinese goods, while India has halted its 36 percent duty for 90 days.
Rare earth magnets are used extensively in industry outside of electric vehicles, such as in hard disk drives, electric motors, generators, and medical imaging equipment like MRI scanners.
In reaction to the US tariffs, China, which produces about 90% of the world’s rare earth minerals, limited exports of these elements earlier this month. In addition to mined minerals, permanent magnets and other completed goods were also subject to export restrictions.
China’s tighter control over the minerals, which are used to produce electronics, armaments, and a variety of consumer goods, has an impact on exports to all nations, not just the US.
