How is Ather Energy managing the impact of China's rare-earth magnet export ban?

Ather Energy is exploring alternatives, including a shift to more widely available light rare-earth magnets, to manage the potential supply gap caused by China's rare-earth magnet export ban.

What were Ather Energy's financial results in the first quarter of 2025?

Ather Energy reported a narrower first-quarter loss, with its losses shrinking to 1.78 billion rupees ($20.3 million) from 1.83 billion rupees a year earlier. The company's sales grew nearly two-fold to 46,078 units.

How has Ather Energy's revenue and expenses changed?

Ather Energy's revenue surged 78.8% year-over-year to 6.45 billion rupees, but rising material costs pushed its overall expenses 54.4% higher. The company's adjusted gross margin rose to 23% from 19% a year ago, driven by non-vehicle revenue.

Home / Business and Economy / Ather Energy Navigates China's Rare-Earth Magnet Ban, Narrows Losses

Ather Energy Navigates China's Rare-Earth Magnet Ban, Narrows Losses

4 Aug

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Summary

Ather Energy reports narrower Q1 losses amid higher demand
Expects only a week's supply gap due to China's rare-earth magnet export ban
Exploring alternatives like light rare-earth magnets to manage impact

Ather Energy Navigates China's Rare-Earth Magnet Ban, Narrows Losses

In the first quarter of 2025, Indian electric scooter manufacturer Ather Energy reported a narrower loss compared to the same period a year earlier. The company's losses shrank to 1.78 billion rupees ($20.3 million) from 1.83 billion rupees, thanks to a nearly two-fold increase in sales to 46,078 units.

Ather's CEO Tarun Mehta stated that the company expects only around a week's worth of supply gap due to China's recent ban on rare-earth magnet exports. To manage the impact, Ather plans to utilize its existing inventory and is also exploring alternatives, including a shift to more widely available light rare-earth magnets.

China, which supplies around 90% of the world's rare-earth magnets, imposed the export ban in April 2025. Last week, major Indian automakers like Mahindra and Hyundai India also shrugged off medium-term issues from the ban, with Mahindra saying it was using alternatives such as light rare-earths and ferrites.

Ather, which makes the popular "Rizta" e-scooter, saw its revenue surge 78.8% year-over-year to 6.45 billion rupees. However, rising material costs pushed the company's overall expenses 54.4% higher. Ather's adjusted gross margin rose to 23% from 19% a year ago, driven by non-vehicle revenue such as warranty programs, software, and accessories.

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