Indian automaker Bajaj Auto $BAJAJELEC.NS, a key player in the electric vehicle (EV) sector, is facing significant challenges due to a shortage of rare earth magnets, essential components for electric motors. China dominates over 90% of global production of these magnets, which are critical not only for EVs but also for clean energy technologies and household appliances. In April 2025, Beijing imposed export restrictions requiring companies to obtain special permits, disrupting supply chains and jeopardizing Bajaj Auto’s plans to scale up EV production by July.