New Delhi, June 10 -- The Indian automobile industry is expected to face disruptions following China's decision to tighten export controls on rare earth elements (REEs), which are critical in manufacturing chips used in automobiles, according to a report by Emkay Research.

The report mentioned that China, which accounts for over 70 per cent of global REE production and controls more than 90 per cent of refining capacity, imposed stricter export regulations on several REEs from April 2025, citing national security and non-proliferation concerns.

The report said "The licensing for exports has become significantly longer. These delays have led to supply uncertainty across sectors reliant on these critical inputs".

It pointed out that elec...