India, Dec. 8 -- With the central government having greenlit its incentive program for large-scale manufacturing of rare earth permanent magnets, India's EV market stands to gain a real, structural advantage. The recent export curb imposed by China, caused several hiccups for many EV manufacturers in India, who source all of their rare earth magnets from China. China not only produces 90% of the world's rare earth magnets, it also controls 70% of the processing.

Rare earth magnets play a vital role across modern electronics. In automobiles, they are used even in conventional ICE models, powering components like electric steering motors and wiper systems. But for EVs, they are absolutely essential: Permanent Magnet Synchronous Motors rely...