China Begins Licensing for Rare Earth Magnet Exports to India

Updated on: 26 Dec 2025, 5:50 pm IST

hina has started approving select applications for rare-earth magnet imports into India, offering limited relief to auto and EV manufacturers affected by supply disruptions.

China has begun issuing export licences for rare-earth magnets (REMs) destined for India, marking an early but cautious easing of restrictions that had disrupted supply chains for key manufacturing sectors, according to news reports.

Licensing Process Shows Initial Movement

As per news reports, China’s Ministry of Commerce has started processing applications for REM exports, with approvals being granted to a limited number of suppliers.

While progress remains gradual, authorities confirmed that the clearance mechanism is now operational, signalling a shift from the earlier freeze.

The approvals cover suppliers linked to Indian automotive manufacturers as well as Indian units of foreign component makers.

These include Jay Ushin, Indian subsidiaries of Continental AG, and vendors supplying companies such as Maruti Suzuki, Mahindra & Mahindra and Honda Scooters and Motorcycles. 

Why do Rare-Earth Magnets Matter?

Rare-earth magnets are a critical input across industries including automobiles, electric vehicles, electronics, medical equipment and defence manufacturing.

China controls a dominant share of global REM production and processing capacity, making its export policies highly influential for global supply chains.

China had introduced licensing requirements for REM exports in April following escalating trade tensions with the United States. The restrictions affected multiple countries, including India, leading to production planning challenges for manufacturers reliant on these materials.

Conclusion

While China’s initial approvals offer limited relief, Indian manufacturers remain cautious as the licensing system is still slow and restrictive. Sustained easing will be key to restoring stability across auto and EV supply chains.

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Published on: Dec 26, 2025, 12:17 PM IST