New Delhi6 hours ago
- Copy link
The impact of the ban on export of precious metals (rare economy) from China has started appearing on the Indian EV market. Top electric two-wheeler companies in the country are going to reduce Bajaj Auto, Ather Energy and TVS motor production.
According to the ET report, Indian companies are struggling with the lack of rare economy to be imported from China for the last 4 months. These magnets are very important for electric motors and are having difficulty in creating electric vehicles without their electric vehicles. Decreased production can increase the prices of electric two-wheelers.
Electric two-wheeler making companies
- Bajaj Auto: India’s second largest EV two-wheeler company Bajaj is going to reduce its production. Problems have already started on his Chetak line.
- Ather Energy: This Bangalore company is planning to reduce 8-10% production.
- TVS Motor: For the last 3 months, the number one company in sales is also forced to reduce production. The TVS spokesperson said, “The lack of magnets in the EV supply chain has increased the challenges in the short and medium term.”
- Ola Electric: Production will not have any effect, as Ola has 5-6 months magnet stock and is also thinking of increasing production. According to Ola spokesperson, “There is no effect on our production.”
These 4 companies make 80% of electric two-wheelers sold in India.
Central government is interacting with China
The automobile industry and the central government are interacting with China, so that the supply of magnets starts again. Apart from this, countries such as Vietnam, Indonesia and Japan are also in talks for supply, but no solution has been found yet. In June, the Indian Automobile Manufacturer Society (SIAM) warned that if the supply did not start soon, the manufacturers may have to reduce production.
If China’s restrictions remain, EV will be expensive
If the restrictions of China remains, then it will see its impact on companies making electric vehicles at the global level. The prices of raw materials will increase, due to which the prices of trains can also go up. Its effect will gradually be seen in all markets including India. Experts in India have warned that if the import from China does not start soon, the production of electric and ICE vehicles may stop.
Manufacturers in India supply 6 to 8 weeks
According to a report by Business Standard, EV original equipment manufacturing in India has a 6 to 8 weeks of REM supply, while CNBC-Tv18, Sudarshan Wenu, managing director of TVS Motor, said that the impact of China’s sanctions could be seen in the production of June or July. If this happens, there may be trouble for Indian EV growers.
Where is the rare meaning materials used in the car
Rare materials are used especially in electric vehicles. They are used to make compact and high performance megate for permanent magnet electric motors.
These magnets made of elements such as neodimium, dysproosium and terbium make more efficients to motors, smaller, light and other options, which is necessary to improve EV’s range and performance.
They are also used in ichelic converters such as auto components installed in ice vehicles. Apart from this, these metals are used from sensors to displays in many systems in both EV and Ice vehicles.
China’s about 70% stake in rare materials mining
Let us know that China accounts for about 70% in the mining of rare materials at global level and up to 90% in production. China recently banned export of 7 precious metals (rare economy) among the US growing trade war.
China has also stopped the magnets of magnets required to assemble from cars, drones to robots and missiles. These materials are very important for automobiles, semiconductors and aerospace business.
Export will be done only through special permit
On April 4, China issued an order to ban the export of these 7 precious metals. According to the order, these precious metals and special magnets made from them can only be sent out of China with special permits.
Companies have to give ‘End-Use Certificate’ to order magnets from China. It has to be mentioned that these magnets are not for military purposes.
