Highlights

• Ather Energy is experiencing a modest one-week delivery delay.
• Delay is due to supply constraints of rare earth magnets linked to Chinese import processing.
• CEO Tarun Mehta signals a strategic pivot towards using lighter rare earth magnets.
• The move aims to mitigate supply chain vulnerabilities.
• Headline suggests a crisis, but Ather's transparent approach indicates it is a manageable supply chain disruption in the EV sector.

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India’s Ather Energy (opens in a new tab) is the latest EV player to cite rare earth magnet shortages—this time linked to“import restrictions placed by China.” According to CEO Tarun Mehta, the crunch hit hardest in Q2, causing a modest one-week delivery delay. He emphasized that the gap has narrowed thanks to internal R&D, hinting that the worst may be over. The article’s framing—“crisis”—may be overstated, but the logistical hiccup is real.

China Blamed, But Was There a Ban?

The article (opens in a new tab) blames Chinese “import restrictions” as the root cause. Fact check: China has not officially banned rare earth magnet exports in 2025. However, tightening of export license conditions and internal inspections has slowed processing and customs clearance, particularly for heavy rare earths (HREEs). So while “restrictions” may not mean embargoes, the phrase is directionally accurate if overly dramatic.

“Small Cost Impact” Is Investor-Grade Honesty

Mehta’s admission of a “small cost impact” tied to supply chain scrambling rings true. Many EV producers across Asia have faced price volatility in NdFeB magnets over the past two quarters. But Ather’s transparency stands out—this isn’t fearmongering, it’s a sober acknowledgment of friction in a vulnerable supply chain.

Heavy vs.Light: A Quiet Shift in Magnet Strategy

Notably, Mehta says Ather is shifting away from heavy rare earth magnets toward “lighter” options. This likely means minimizing reliance on dysprosium and terbium, which are pricier and more geopolitically sensitive. This trend—substitution, magnet recycling, or efficiency optimization—is spreading industry-wide and signals an opportunity for alternative tech providers.

The Bajaj Bombshell? Not Yet Confirmed

Citing an Economic Times report, the article notes Bajaj Auto may see a “zero month” of EV output in August. That’s a striking claim—but one not confirmed by the company directly here. If true, it would suggest a deeper regional ripple. For now, we mark this as unverified but plausible.

Final Word

The headline screams “crisis,” but Ather’s own words whisper “manageable.” The magnet supply chain remains fragile, especially under China’s tightening grip—but this story is less about collapse, more about cautionary light.