Economic Implications of China's Rare Earth Export Controls on India's Electric Vehicle Industry

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Authors: Abhishek A. Tiwari
Cited by: 0

Abstract

China's escalating export restrictions on rare earth elements represent a critical geopolitical supply-side shock to India's electric vehicle sector. Since April 2025, China has progressively restricted exports of 12 rare earth elements, impacting India's magnet supply chains and threatening EV production growth. This research examines the multifaceted economic implications through secondary data analysis, case studies of industry disruptions, and evaluation of government policy responses. The study reveals structural vulnerabilities in India's supply chain architecture, examines interconnections between geopolitical tensions and economic outcomes, and assesses the adequacy of strategic responses, including the National Critical Mineral Mission and Production-Linked Incentive enhancements. Findings suggest that strategic diversification through international partnerships, domestic capacity building, and innovation-focused policies is necessary to sustain India's EV transition amid geopolitical constraints.

Fields of Study & Subjects

Extraction and Separation Processes Global Energy Security and Policy COVID-19 Geopolitics Technology Migration

Publication details

Journal / source
Zenodo (CERN European Organization for Nuclear Research)
Publication date
17 January 2026
Language
EN