Image credit: X account @DrSJaishankar
China Has Not Yet Resumed Rare Earth Exports To India
During an August 2025 visit, Chinese Foreign Minister Wang Yi told Indian External Affairs Minister S. Jaishankar that export restrictions on rare earths and magnets would be eased. Despite this, Indian automakers and EV firms say no shipments of rare earth magnets have resumed from China.
Export Curbs Still In Effect
China imposed strict export controls from April 2025 on several rare earth metals and high-performance magnets. These materials are essential for EV motors, electronics, and other precision industries. Indian importers have filed multiple applications, but none have been approved so far.
Impact On Indian Auto And EV Makers
Indian EV and two-wheeler makers are facing delays and higher costs due to the lack of access to rare earth magnets. Some are importing finished products or alternative components, which are more expensive and less efficient. The supply crunch is threatening production plans, especially ahead of festival season demand.
Government Options Being Considered
India is considering diplomatic representations to China to press for resumption of supplies. Other approaches include boosting domestic production of rare earth magnets, exploring alternate sources, and using substitutes or lighter rare earth elements. Incentives for local manufacturing are being discussed among industry and government.
