- China has not restarted rare earth exports to India despite assurances.
- Delay impacts EV and electronics makers reliant on critical magnets.
- India mulls raising the issue with China’s Commerce Ministry for resolution.
China has not yet restarted the supply of rare earth elements and magnets to India, essential for items such as EVs, mobile phones, speakers, and headphones, three weeks after Chinese Foreign Minister Wang Yi assured India he would resolve export limitations, sources indicated.
“None of our importers of rare earth magnets, including EV manufacturers, has received their supplies from China. Nor have we heard of any confirmations from Beijing on our applications getting expedited,” a source tracking the matter told BusinessLine.
The government is considering reaching out to the Chinese Commerce Ministry with a representation of the guarantee that Yi provided to his Indian counterpart, S Jaishankar, last month regarding the restoration of supplies, the source mentioned
“It is being hoped that the bonhomie exhibited between Chinese President Xi Jinping and Prime Minister Narendra Modi at the recent SCO summit will do its bit in helping with restarting of supplies,” the source said.
The Chinese Foreign Minister, who held talks with Jaishankar on August 19, consented to lift restrictions on the export of rare earth minerals, specialty fertilizers, and tunnel boring machines to India, as reported by authoritative sources connected to the Indian government.
Yi's visit, occurring when both China and India faced tariffs from the US, was seen as a component of joint efforts to enhance frayed relations following the Galwan Valley conflict in 2020. Beijing, however, did not provide any official statement or publicly commit to resuming exports.
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“Since the Chinese Minister gave a direct assurance on the matter to the Indian Minister, it was being hoped that action would happen early despite no official statement on the matter,” the source said.
On April 4, 2025, China's restrictions on exporting seven rare earth materials and magnets significantly impacted Indian EV manufacturers, including those producing two-wheelers, who rely heavily on these vital supplies from the neighboring nation.
Exasperated by their ongoing attempts to persuade Beijing to resume supplies, car manufacturers have been exploring various options to obtain larger items that contain rare earth elements, which are not subject to export restrictions. “These are stopgap arrangements and are expensive,” the source said.
So far, the Indian auto industry’s requests for meetings with Chinese government officials have not been acknowledged.