In a move expected to ease India’s shortage of rare earth materials, several Indian companies have received clearance from China to import rare earth magnets. Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal confirmed on Thursday that licenses have been granted to select Indian firms for the imports.
At least three companies—Continental India, Hitachi, and Jay Ushin—have received initial approval to import the magnets, which are critical components for India’s automotive and electronics sectors.
These are the first import approvals since China tightened export controls on rare earth magnets in April, a step that had disrupted supply chains and affected key industries in India. Officials said the move is expected to ease some of the pressure on manufacturers, particularly electric vehicle (EV) producers.
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Jaiswal noted that India is closely watching how ongoing US–China discussions on rare earth trade may influence the broader supply environment.
According to the MEA, the import licenses come with specific restrictions—the magnets cannot be re-exported to the United States and cannot be used for defence-related applications.
India has been engaging with China since mid-2025 to ensure stable access to rare earth materials and improve predictability in the supply chain. Both the government and industry associations have been seeking alternative solutions to the bottlenecks caused by export curbs.
Meanwhile, in a parallel development, US President Donald Trump announced on Thursday that he and Chinese President Xi Jinping have agreed on a one-year deal for the supply of critical rare earth materials. The announcement followed their meeting in Busan, South Korea, on the sidelines of the 32nd APEC Economic Leaders’ Meeting—their first in-person interaction in six years.
Trump said the agreement will be renewed annually and represents significant progress in the countries’ strained trade relationship. “All the rare earths have been settled, and that’s for the world,” Trump told reporters aboard Air Force One after the meeting.
He added that he had also agreed to reduce fentanyl-related tariffs on China from 20 per cent to 10 per cent, describing the meeting with Xi as “a 12 out of 10.” Trump said, “A lot of things we brought to finalisation,” and praised the Chinese President as “a tremendous leader of a very powerful country.” (With IANS inputs)
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