November 1, 2025

New Delhi buzzes with new hope as China resumes heavy rare earth magnet supplies to India after a six-month pause! This news brings a big sigh of relief to electric vehicle makers, renewable energy firms, and gadget creators who have been eagerly waiting for these powerful magnets. But hold on, there’s a spicy condition attached. Beijing has laid down firm rules: the magnets cannot be sent to the US again, nor can they serve military purposes. This comes amid the ongoing trade war between China and the US, even though Presidents Donald Trump and Xi Jinping recently agreed to ease some tensions. Insiders reveal that exporters from China have now got the green signal to sell these magnets to four Indian companies — Hitachi, Continental, Jay-Ushin, and DE Diamonds. The approval process wasn’t easy; China wanted guarantees, known as End-user Certificates (EUC), confirming that these magnets won’t end up in US markets or be used for weapons. More than 50 applications were stuck waiting for China's Ministry of Commerce to nod, but finally, some relief is here. A senior industry pro shared, “There seems to be some easing in supplies. Four companies have got approvals for importing rare earth magnets.” Even air routes between Kolkata and Guangzhou have reopened, making transport smoother. Ministry of External Affairs spokesperson Randhir Jaiswal confirmed that Indian firms are indeed receiving licenses from China, but he cautioned, “We have to look at how the US and China talks will play into our domain.” Why this matters? India's electric vehicle industry is the biggest user of these magnets, which are also key in making wind turbines, high-tech gadgets, aerospace, and defense equipment. China, controlling a whopping 90% of the world’s supply, had clamped down on exports from April 4 last year to protect national security. This move was a tit-for-tat after the US slapped tariffs on Chinese goods. India imported rare earth magnets worth ₹306 crore in FY25, totaling 870 tonnes! While China had loosened supplies to Europe and Southeast Asia, India was left waiting — until now. Adding to the excitement, President Trump announced that he and President Jinping have agreed on a one-year deal to supply crucial rare earth materials, lighting hope for smoother trade ahead. So, will this be the spark India's tech industries need? Time will tell, but for now, the rare earth magnet saga takes an electrifying turn!

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Tags: China, Rare earth magnets, India, Electric vehicles, Trade war, Export controls,