Ather CEO Tarun Mehta emphasizes local battery partnerships, says China’s rare earth restrictions won't affect operations ahead of IPO.

Electronic scooter manufacturer Ather Energy will not be affected by China's recent move to limit imports of rare earth-based magnets into India the CEO and co-founder Tarun Mehta told reporters on April 26, during a press conference in advance of its IPO.

"We generally are not affected by this. This is more in the direction of China-US relations and not ours," Mehta said, responding to concerns following recent reports of China restricting supply of crucial materials for EV components.

Rare earth magnets can be essential for motors in electric vehicles. China is the main world supplier.

But, Mehta emphasized that Ather's supply chains are safe for the time being. He said that even though rare earth magnets aren't an issue but lithium cells -- a vital component of EV batteriesremain supplied by China.

"Our focus is to partner with more domestic players," Mehta stated. Ather is already in talks to Amara Raja as well as LG Energy Solutions for batteries supply as part of the larger strategy of diversifying and expand their supply chain.

The comments are made just a few days prior to Ather Energy's highly sought-after Initial public offering (IPO) that will be open for subscribers on April 28.

The IPO will comprise of an issue of shares valued at around 26,000 crore, and offering-for-sale (OFS) component that is offered to current shareholders, which includes NIIF.

Established in 2013 in 2013 by Tarun Mehta as well as Swapnil Jain. Ather is now one of the top Indian two-wheeler electric manufacturers, competing with companies like Ola Electric, Bajaj and TVS Motor Company.

The profits generated by the IPO are anticipated to be used in increasing production capacity, putting money into the field of research and development establishing new retail outlets, as well as improving the charging infrastructure of Ather Grid.