Transition to Light Rare Earth Magnets in Electric Two-Wheelers

Leading electric two-wheeler (e2W) companies in India are testing light rare earth magnets to mitigate the supply challenges posed by China's export control order from April 1, which could potentially halt production.

China's Export Control Order

• China has restricted the export of seven medium and heavy rare earth materials, which are essential for electric vehicles (EVs), due to concerns over "dual usage".
• The restricted materials include samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium.
• Light rare earth materials such as neodymium are not part of this export control, offering an alternative for e2W manufacturers.

Benefits of Light Rare Earth Magnets

• Light rare earths have a lower atomic weight and are more abundant globally compared to heavy rare earths.
• Initial tests have shown no reduction in efficiency for electric scooters using these magnets, maintaining range, speed, battery life, and rideability.

Challenges and Solutions

• Indian companies are collaborating with Chinese manufacturers for the sub-assembly of motors using light rare earth magnets.
• Some companies are facing delays due to Customs clearance, as Chinese regulations are stringent to ensure no heavy rare earths are present.
• While light rare earths can be sourced from multiple countries, China still dominates 60% of the supply.

Industry Outlook

• e2W companies expect to launch vehicles with light rare earth magnets within three to four months, pending government approvals.
• Heavy rare earth materials are scarce in India, making the shift to light rare earths crucial.

Limitations for Other Vehicles

• Light rare earth elements may not be suitable for heavier passenger cars due to potential efficiency issues.