China Begins Issuing Rare-Earth Magnet Export Licences to India
12/26/2025, 8:01:14 PM | China | India
Automotive
China has started approving rare‑earth magnet exports to India, offering partial relief while strict end‑use checks and slow clearances continue.
China has begun issuing export licences for rare-earth magnets to India, easing some pressure on the domestic auto and auto-component sectors after Beijing imposed export controls in April.
Approvals are being routed through Indian suppliers and Indian units of foreign component makers. Companies that have received or are pursuing clearances include Jay Ushin, the Indian operations of Continental AG, vendors serving Mahindra & Mahindra and Maruti Suzuki, and suppliers to Honda Scooters and Motorcycles.
Beijing’s Ministry of Commerce has started processing applications, but the flow is slow. Export clearance requires detailed end-use assurances from Indian importers to prevent diversion to dual‑use or defence applications, making documentation and verification time-consuming.
The controls, introduced amid broader trade tensions, had disrupted supply chains for electric vehicle motors and other sectors dependent on neodymium‑based magnets. Over recent months New Delhi engaged with Chinese authorities, and Beijing gave diplomatic assurances in June to ease some restrictions. Industry officials say automakers have mitigated immediate production risks by adjusting supply chains and managing inventories, though uncertainty and delays persist while approvals scale up.