India announced on the issue of import and export of rare earths with China, and has not received a green light. The Indian automotive industry's rare earth negotiation delegation is still waiting for Chinese approval to supply rare earths! Before even departing for China, India has already started negotiations on the supply of rare earth magnets. Rare earth magnets are widely used in automobiles, home appliances, clean energy, missile technology, and other fields, and are the core components of permanent magnet synchronous motors in electric and hybrid vehicles, as well as key materials for electric power steering systems in internal combustion engine vehicles.

China is the world's main exporter of rare earth magnets, controlling over 90% of the global magnet processing capacity. Starting from April 4, 2025, China has implemented a special export license system for seven rare earth elements - samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, as well as related magnets. Importers are required to provide detailed statements on final use, customer commitment letters, and confirm that the materials are not used for defense purposes or exported to the United States.

In its fiscal year 2024-2025, India imported approximately 450 tons of rare earth magnets from China, accounting for about 80% of India's imports. India has endorsed nearly 30 enterprise import applications, but none have been approved by China, and no goods have been delivered so far.

India is trying to shift to suppliers such as Vietnam and Australia, while also investing in its domestic rare earth processing industry to reduce the quantity of rare earth magnets imported from China. However, it is too late, and India temporarily cannot escape China's rare earth magnets, which is inevitable.

India wants to buy rare earths, but it's not impossible. However, Indian auto companies do not accept our regulations, especially Suzuki, which produces the most and sells the most in India, but Suzuki refuses to accept the regulation. Now we have many on-site representatives, who monitor whether the imported rare earths are being resold. Therefore, Suzuki refuses due to its unwillingness to accept the regulation. Thus, India cannot obtain our rare earths, and this is a fact.

India once tried to break through, seeking multiple supply channels and producing some rare earth magnets itself to replace Chinese ones, but all failed. After all, it's too late. To establish a complete rare earth supply chain, it's completely impossible without one or two decades, and requires hundreds or even thousands of billions of dollars in basic investment to form a full rare earth industry chain.

Even the United States can't break the restrictions on rare earths, let alone India. So India has been very anxious and has always demanded to go to China for negotiations, but it hasn't been successful yet. As for how much rare earth magnets India uses itself, everyone knows, most of them are sold to European and American countries. India just places orders and earns a commission. With India's industrial strength, they can't possibly use that many rare earth magnets; they are just reselling for profit.

Therefore, we are determined to delay India's negotiations in China, and it won't be easy to succeed. If India wants to get our country's rare earths, it needs to pay enough, otherwise it won't be able to buy them.

In fact, India does not have such a big demand for China's rare earth magnets, mainly because they act as middlemen to resell them overseas. This time, they can't act as middlemen, so they can't make money, and naturally, they are worried. But you can't rush. There are many countries more urgent than India, and it's not your turn to be worried yet!

Original article: https://www.toutiao.com/article/1836432498239561/

Statement: This article represents the views of the author.