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India Secures Rare Earth Magnet Imports from China Amid Global Supply Crunch

Indian companies have finally received licenses to import rare earth magnets from China after months of supply constraints. This breakthrough comes with strict conditions prohibiting re-export to the US and military applications. The approvals should provide relief to India's automotive and electronics sectors that depend on these critical components. Meanwhile, the US and China have also reached their own rare earth supply agreement, signaling global efforts to stabilize this crucial market.

Key Points: Indian Firms Get Licenses to Import Chinese Rare Earth Magnets

  • Continental India, Hitachi, and Jay Ushin receive initial import approvals
  • Imports cannot be re-exported to US or used for defense purposes
  • Move addresses supply issues affecting EV and electronics manufacturers
  • Comes as US-China announce rare earth supply deal during APEC summit
2 min read

Indian firms get licenses to import rare earth magnets from China

Three Indian companies receive government approval to import rare earth magnets from China, easing supply bottlenecks for automotive and electronics industries.

"We have to look at how the US and China talks will play into our domain. - Randhir Jaiswal, MEA Spokesperson"

New Delhi, Oct 30

Ministry of External Affairs spokesperson Randhir Jaiswal said on Thursday that some Indian companies have received licenses for importing rare earth magnets from China.

At least three Indian companies — Continental India, Hitachi, and Jay Ushin — have received initial government approval to import the magnets. These firms supply components for India's automotive and electronics industries.

This is the first set of clearances since Beijing imposed tight controls on the export of these magnets earlier in April. The move is intended to alleviate supply issues that have impacted key industries in India.

Jaiswal also said, “We have to look at how the US and China talks will play into our domain."

The import licenses have specific conditions attached. The imported magnets cannot be re-exported to the United States and cannot be used for defence-related purposes.

The MEA had previously confirmed in June 2025 that it was in discussions with China to secure the supply of rare earth materials and bring predictability to the trade supply chain.

The Indian government and industry bodies have been working to find a solution to the supply bottlenecks. The automotive sector, especially manufacturers of electric vehicles (EVs), was particularly affected by the export restrictions. This initial grant of licenses is expected to ease some of the pressure.

Meanwhile, US President Donald Trump on Thursday announced that he and Chinese President Xi Jinping have agreed on a one-year deal for the supply of crucial rare earth materials. The announcement came after the two leaders met at Busan in South Korea, on the sidelines of the 32nd APEC Economic Leaders’ Meeting — their first in-person meeting 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.”

- IANS

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Reader Comments

R
Rajesh Q
While I understand the immediate need, we should really focus on developing our own rare earth mining capabilities. Depending on China for critical materials is risky in the long term. Make in India should mean self-reliance too.
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Arjun K
Good move by the government with proper safeguards - no re-export to US and no defense use. Shows we're being strategic about our dependencies. The conditions make sense given the geopolitical situation.
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Sarah B
Interesting timing with the US-China deal announcement. India needs to navigate this carefully between both powers. The comment about watching how US-China talks affect "our domain" shows the government is aware of the complexities.
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Vikram M
As someone in the auto components industry, this is a huge relief! The last few months have been challenging with production delays. Hope this helps our EV manufacturers meet their targets. 🙏
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Michael C
The government should have acted faster on this. Many small manufacturers suffered losses due to the supply crunch. While this is welcome, we need better contingency planning for such critical materials.
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Ananya R
This is good news for our electronics manufacturing too! Rare earth magnets are crucial for so many products. Hope this helps create more jobs in our manufacturing sector. 🇮🇳

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