China’s rare earth magnet embargo risks sparking a disruptive supply chain crisis for India’s automotive sector, evoking the post-pandemic semiconductor shortage. Unlike the earlier disruption, which stemmed from natural disasters and prompted a collaborative global response, this is a calculated geopolitical move, with China weaponising its near-monopoly over rare earth magnet production.Holding about 90% of the global market, China’s curbs leave countries like India exposed to collateral damage with no quick solution in sight. The automotive, electronics, and electrical sectors are all vulnerable, but electric vehicles and electric two-wheelers face the maximum exposure due to their dependence on neodymium-iron-boron magnets.
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