Indian Companies Secure Licenses for Rare Earth Magnet Imports from China Amid Global Supply Challenges

The imported rare earth magnets from China to India come with the stipulation that they cannot be re-exported to the United States.

New Delhi:

On Thursday, Ministry of External Affairs spokesperson Randhir Jaiswal confirmed that several Indian companies have received licenses to import rare earth magnets from China.

Continental India, Hitachi, and Jay Ushin are among at least three Indian firms that have secured initial government approval for importing these magnets. These companies provide essential components to India's automotive and electronics sectors.

These approvals mark the first set of clearances since Beijing implemented strict export controls on rare earth magnets in April. This development aims to address supply challenges that have been affecting critical industries across India.

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

The import licenses come with specific restrictions. The magnets imported from China cannot be re-exported to the United States, nor can they be utilized for defense-related applications.

In June 2025, the MEA had previously acknowledged ongoing discussions with China to ensure the supply of rare earth materials and to bring stability to the trade supply chain.

Both the Indian government and industry associations have been actively seeking solutions to overcome supply bottlenecks. The automotive industry, particularly electric vehicle (EV) manufacturers, has been significantly impacted by these export restrictions. The recent granting of licenses is expected to provide some relief to the affected sectors.

In a parallel development, US President Donald Trump announced on Thursday that he and Chinese President Xi Jinping have reached a one-year agreement regarding the supply of crucial rare earth materials.

This announcement followed their meeting in Busan, South Korea, during the 32nd APEC Economic Leaders' Meeting, which was their first face-to-face encounter in six years.

Trump stated that the agreement will be subject to annual renewal and represents important progress in the strained trade relationship between the two nations.

"All the rare earths have been settled, and that's for the world," Trump informed reporters aboard Air Force One after the meeting.

He also mentioned an agreement to reduce fentanyl-related tariffs on China from 20 percent to 10 percent, describing his meeting with Xi as "a 12 out of 10."

Trump added, "A lot of things we brought to finalisation," and commended the Chinese President as "a tremendous leader of a very powerful country."

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)