Rare Earth Magnets: Indian Auto Delegation Awaits China's Formal Approval for Supply Talks

Control over the mining and production of rare earth magnets and recent export restrictions have affected India's automobile industry.

According to industry insiders, representatives from India's automotive sector have not yet traveled to China to expedite the import of rare earth magnets. The delegation is still waiting for formal approval from China's Ministry of Commerce. Last month, about 40 to 50 industry executives obtained visas, but they are still waiting for Chinese authorities to formally agree to hold meetings on this matter. Facing shortages, the domestic automobile industry is also seeking government support to speed up the approval of imports of rare earth magnets. "So far, they (Chinese authorities) have not given any appointment, so the delegation has not left. The situation is very bad; so far, not a single license has been issued to us," a source told PTI. The source added that if this situation continues, the domestic automobile industry in India will face shortages, leading to significant production losses. Since April 4th this year, the Chinese government has imposed restrictions on the export of rare earth elements and related magnets, forcing the domestic automobile industry to take measures. China has issued special export licenses for seven rare earth elements and related magnets. In April this year, China, the world's main exporter of rare earth magnets, imposed export restrictions on seven rare earth elements and finished magnets and required export licenses. The revised framework requires detailed disclosure of end use and customer declarations, including confirmation that the products will not be used for defense or re-exported to the United States.

India imported 540 tons of magnets from China in the previous fiscal year, more than 80% of which came from China, and has already started to feel the impact. As of May 2025, nearly 30 Indian companies had their import requests approved by the Indian government, but they have not received approval from Chinese authorities, and no goods have arrived yet.

Original article: https://www.toutiao.com/article/1836848443138060/

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