Two-wheeler electric vehicle manufacturer Ather Energy’s Chief Executive Officer (CEO) Tarun Mehta said that the company remains largely ‘unaffected’ by China‘s move to restrict exports of rare earth magnets to India, among other nations, reported the news portal Moneycontrol on Saturday, April 26.
Tarun Mehta also addressed that China’s move is more towards the relationship between the nation and India. These rare earth magnets are key materials in parts or components used in motors fitted in electric vehicles.
“We largely remain unaffected by this. It is more towards the US-China relationship, not us,” said Mehta, according to the news report.
Mehta also mentioned that the two-wheeler EV maker’s supply chain is secure as of now, but the lithium cells, which are an essential component, are still being imported from China.
“Our focus is to partner with more domestic players,” said Mehta, cited by the news portal. The company has partnered with Amara Raja and LG Energy Solutions for the battery cell supplies, as the brand aims to diversify and localise its supply chain in India, according to the news report.
This comes ahead of the company’s initial public offering (IPO), which is scheduled to start its public subscription from April 28 to April 30. The company intends to use the funds raised to establish an electric two-wheeler manufacturing facility in Maharashtra and to reduce its existing debt.
China export curbs
According to Mint’s earlier report on April 25, China imposed restrictions on the export of rare earth magnets, which will likely hurt Indian companies that produce critical parts required to run electric vehicles.
China has started asking for end-user certificates to clear exports of these magnets, according to a CNBC-TV18 report.
The certificate needs to be signed by a director of the importing company, which discloses that the end-use of the magnets, along with pictures of the product where they will be used, a person aware of the development told Mint.
However, the restrictions are not specific to India and were brought into effect on April 4, after US President Donald Trump announced his ‘reciprocal tariffs’ on many nations, escalating a trade war between the United States and other world nations.
According to the industry experts cited in the report, China’s move can turn out to be a major worry for EV makers who source motors locally or produce them on their own.
This can also potentially slow down the production rate of the electric vehicles and increase the waiting period for the final customers.
