China Resumes Rare Earth Magnet Supplies To India After Six-Month Freeze, With Export Restrictions Attached

China has restarted the export of heavy rare earth magnets to India after a six-month suspension, offering relief to domestic manufacturers in the electric vehicle, renewable energy, and consumer electronics sectors that rely on these critical components.

However, the resumption comes with strings attached. Beijing has stipulated that the magnets cannot be re-exported to the United States or used for military applications.

The development follows a meeting between US President Donald Trump and Chinese President Xi Jinping, where both sides signalled intent to ease trade tensions.

Four Indian companies — Hitachi, Continental, Jay Ushin, and DE Diamonds have secured approvals from Chinese authorities to import the magnets, as per an Economic Times report.

“There seems to be some easing in supplies. Four companies have got approvals for importing rare earth magnets,” a senior industry executive was quoted as saying by ET. Direct flights between Kolkata and Guangzhou have also resumed, further facilitating trade.

Indian firms had earlier submitted End-User Certificates (EUCs) assuring that the materials would not be used for weapon manufacturing. More than 50 applications, however, had been awaiting approval from China’s Ministry of Commerce.

China, which controls about 90 per cent of global rare earth magnet production, imposed export restrictions on 4 April citing “national security” concerns, in response to US tariffs. The move required exporters to obtain special licenses backed by EUCs.

India imported 870 tonnes of rare earth magnets worth Rs 306 crore in FY25. Earlier on Thursday (30 October), Trump announced a one-year agreement with Xi for the supply of critical rare earth materials.

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