With China imposing fresh export controls on technologies used in lithium batteries, cathodes, and graphite anodes, primarily used in electric vehicles, Indian manufacturers are trying to import technology from other Asian and European countries, said auto manufacturers and industry bodies.
"If they (auto companies) were looking at using Chinese technology for manufacturing magnets, they would probably have to rework their plans. They will have to look at technology and capital equipment, which are non-Chinese,” said Vinnie Mehta, Director General, Automotive Component Manufacturers Association (ACMA). He said that the Indian manufacturers are likely to explore Japanese solutions as an alternative.
Indian electric vehicle manufacturers rely heavily on Chinese technology, particularly for lithium-ion batteries, which account for a significant portion of an EV's cost and make up a large percentage of the value chain where China dominates production. With China banning exports of rare earth magnet, the Indian EV industry faced challenges. On top of that, restrictions on technology will put EV supply chain at risk, as some companies are already struggling after the rare earth magnet ban.
The revised export restrictions will come into force on 8 November, requiring exporters to obtain additional approvals before dispatching shipments. “In the previous one (rare earth ban) we were able to manage it by stocking out and innovating. But it's going to be a challenge this time. But we need to address this issue as a whole country together,” said Ganesh Mani, CEO, Switch Mobility, EV unit of the Hinduja Group and a subsidiary of the Indian company Ashok Leyland.
He affirmed that they are already working with multiple companies across countries in Asia and Europe, apart from the company working on the technology internally too. The Society of Indian Automobile Manufacturers (SIAM) also told TNIE that they “are reading the fine prints of tech curb” and accordingly they will analyse the impact of the same and figure out alternatives. In fact, the government plans to roll out the National Critical Mineral Stockpile (NCMS), a dedicated initiative to secure domestic access to rare earth elements, according to officials.
While the Indian EV manufacturers continue to struggle with the China’s tightening measures on rare earth, battery and technology exports, China has filed a formal complaint against India at the World Trade Organization (WTO), alleging that New Delhi’s electric vehicle (EV) and battery subsidies give “an unfair competitive edge” to its domestic industries and undermine Beijing’s interests.
