Overview
- New Export Controls: China imposes restrictions on lithium battery, cathode, and graphite anode technologies effective November 8, 2025, requiring extra approvals, compounding the rare earth magnet ban.
- Indian EV Industry Response: Indian automakers pivot to Asian and European sources, with ACMA’s Vinnie Mehta urging a shift to non-Chinese tech, particularly Japanese alternatives.
- Supply Chain Risk: Reliance on China for lithium-ion batteries (key cost driver) threatens EV production; companies like Switch Mobility innovate and stockpile to cope.
- Government Action: Plans for National Critical Mineral Stockpile (NCMS) to secure rare earths domestically; SIAM analyzes impacts for alternative strategies.
- Industry Voices: Switch Mobility’s Ganesh Mani calls for national collaboration; ACMA highlights urgent need for diversified capital equipment.
- Global Tensions: China files WTO complaint against India’s EV subsidies, claiming unfair edge, amid tightening Beijing measures.
- Market Stakes: With China dominating 70% of global battery production, disruptions could hike EV costs 15–20% in India.
China’s Tech Clampdown Shakes Indian EV Dreams: Automakers Hunt for Global Lifelines
As China tightens its grip on electric vehicle technologies, Indian manufacturers are racing to diversify suppliers, fearing a crippling blow to their supply chains. The latest restrictions on lithium battery, cathode, and graphite anode exports—effective November 8, 2025—require additional approvals, piling pressure on an industry already reeling from the rare earth magnet ban. With China controlling 70% of global battery production, these curbs threaten to inflate EV costs by 15–20% and stall India’s ambitious electrification goals.
The move underscores Beijing’s strategic pivot amid U.S. tariffs and global scrutiny, but for India—aiming for 30% EV penetration by 2030—it’s a wake-up call to build resilient ecosystems.
Fresh Restrictions Compound Existing Woes
The new controls target core EV components, where China holds a vice-like dominance. Lithium-ion batteries alone account for 40–50% of an EV’s cost, and Indian firms like Ola Electric and Ather Energy import 80–90% from Chinese suppliers. The rare earth magnet ban earlier this year already disrupted motor production, forcing stockpiling and R&D scrambles. “We’re managing through innovation, but this demands a national effort,” says Ganesh Mani, CEO of Switch Mobility, the EV arm of Hinduja Group’s Ashok Leyland.
Mani reveals ongoing partnerships with Asian and European firms, alongside internal tech development, to mitigate risks. “Past bans we navigated by stocking up, but these curbs challenge the entire chain—we must address it collectively.”
Automakers Pivot to Non-Chinese Alternatives
The Automotive Component Manufacturers Association (ACMA) warns of a full retooling. “Firms eyeing Chinese magnet tech must pivot to non-Chinese solutions and equipment,” says Director General Vinnie Mehta. Japan emerges as a prime alternative, with its advanced battery and magnet innovations from firms like Panasonic and Hitachi. Mehta notes that Indian players are accelerating scouting missions to Europe and Southeast Asia for lithium cathode and anode tech.
The Society of Indian Automobile Manufacturers (SIAM) is poring over the restrictions’ fine print to gauge impacts and craft contingency plans. “We’re analyzing and identifying alternatives to safeguard our supply chain,” a SIAM spokesperson told TNIE.
Government’s Stockpile Plan: A Strategic Buffer
In response, the Indian government is fast-tracking the National Critical Mineral Stockpile (NCMS), a dedicated reserve for rare earths and battery materials. Officials say it will shield domestic production from global volatility, complementing PLI schemes that have already drawn ₹18,000 crore in investments. This aligns with the ₹10,000 crore allocation under PM E-Drive for raw materials, aiming to localize 50% of battery production by 2027.
WTO Shadows: China’s Subsidy Complaint
Amid the turmoil, tensions escalate: China lodged a WTO complaint against India’s EV subsidies, labeling them an “unfair competitive edge” that harms Beijing’s interests. New Delhi’s incentives, including 5% GST on EVs and FAME-III’s ₹10,000 crore push, have spurred 1.2 million EV sales in 2024–25—a 50% jump. The dispute could drag into 2026, testing bilateral ties as India asserts self-reliance.
Path Forward: Diversification or Disruption?
With 2025 EV sales projected at 2.5 million units, disruptions could derail growth in Tier II/III cities, where affordability trumps range. Experts like Mehta advocate for public-private partnerships to fast-track local R&D, potentially via IIT collaborations. Mani echoes the sentiment: “Innovation and global ties will be key—let’s turn this challenge into an opportunity for self-sufficiency.”
As India charges toward its 2030 targets, China’s curbs highlight the fragility of global chains. By embracing alternatives and bolstering domestic capabilities, Indian EV makers can not only survive but thrive in this high-stakes race.
Source: newindianexpress.com
Read More about EV Car News
Also Read
- MG Windsor Big Discounts Jan 2026: First-Ever Offers Make It Cheaper Than Launch Price
- JSW Motors To Enter Passenger Car Space In June With Rs 45 Lakh Plug-In Hybrid SUV
- Maruti Suzuki Second Car Plant Gujarat Investment: ₹4,960 Crore for 10 Lakh Unit Capacity
- India’s EV Sales Reach 2.3 Million Units in 2025, 8 Percent of New Vehicles: Strong Growth Led by Two-Wheelers
- VinFast Off to a Fast Start, Crosses 1k EV Sales in India: Milestone in Just Four Months
- What Happens To EV Battery After End-Of-Life?
