China Yet To Resume Rare Earth Supplies To India Three Weeks After Wang Yi's Assurance, Hitting EV And Electronics Sectors

Despite assurances from Chinese Foreign Minister Wang Yi three weeks ago, China has yet to resume exports of rare earth elements and magnets to India, severely impacting the electric vehicle (EV) and electronics manufacturing sectors.

Multiple reports revealed that Indian importers, including major EV producers, have not received any shipments, nor have their applications been expedited by Beijing.

The crunch stems from export restrictions imposed by China, which controls nearly 90 per cent of global rare earth supplies. These materials are crucial for producing EVs, cell phones, speakers, and headphones.

A source-tracking development told The Hindu BusinessLine that no confirmations have arrived, forcing manufacturers to explore costly alternatives. This delay comes after Wang Yi met Indian External Affairs Minister S Jaishankar in late August 2025, promising to address the curbs.

Meanwhile, India is now turning to unconventional sources. According to reports, the Ministry of Mines has engaged state-owned and private firms to obtain rare earth samples from mines controlled by Myanmar's Kachin Independence Army (KIA).

New Delhi aims to test these samples for heavy rare earths suitable for magnets in EVs and advanced equipment. However, for now, despite the assurances, supplies remain elusive, potentially hiking production costs and delaying EV rollout targets.

The government is considering a fresh diplomatic push with China to resolve the impasse. It is worth noting that China's dominance in rare earths has long been a strategic concern.

Indian firms like Sterling and others are developing rare-earth-free EV motors to reduce dependency. However, experts warn that full self-reliance could take years, leaving sectors vulnerable in the interim.

Without swift resolution, India's electronics exports could suffer, affecting jobs and growth in key industries.