China Grants Rare Earth Magnet Licences to Indian Firms
China has issued export licences for rare earth magnets to a few additional Indian companies, offering partial relief to manufacturers affected by earlier supply restrictions. The move follows tighter controls imposed by Beijing earlier this year on the export of rare earth magnets, which are critical inputs for several high-technology industries.
Indian Companies Receive Conditional Access
The licences have been granted to select Indian firms and Indian subsidiaries of global auto and electronics component makers. These companies rely on rare earth magnets for producing electric motors, automotive components, consumer electronics and renewable energy equipment. Industry officials said the approvals allow imports to resume, though volumes remain limited and subject to strict conditions.
Usage Restrictions Attached
According to officials familiar with the process, the export licences come with conditions on end use. Importing companies are required to certify that the magnets will be used only for civilian applications and will not be re-exported to restricted destinations. These conditions are part of China’s broader export control framework for strategic materials.
Relief for Manufacturing Sector
Indian manufacturers, particularly in the automotive and electric vehicle segments, had flagged concerns over potential production disruptions after China tightened export norms. The issuance of licences is expected to ease immediate supply pressures, though companies remain cautious about long-term dependence on overseas sources.
Strategic Supply Chain Concerns
China dominates global processing and supply of rare earth magnets, making its export policies a key factor for industries worldwide. Indian policymakers and industry bodies have reiterated the need to accelerate domestic capabilities in rare earth processing to reduce vulnerability to external supply shocks.
