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In a development signaling relief from ongoing supply chain disruptions with China, several Indian companies have received permits to import rare earth magnets from the world’s top producer of these critical materials.
External Affairs Ministry spokesperson Randhir Jaiswal confirmed on Thursday, “Some Indian companies have received licenses for importing rare earth magnets from China.”
According to media reports, the companies that have been granted licenses include Jay Ushin, De Diamond Electric India, the Indian unit of Continental AG (Germany), and Hitachi Astemo (Japan).
China imposed export restrictions on rare earth magnets and related materials in April 2025, disrupting global automotive supply chains. India’s electric vehicle sector, which depends heavily on these magnets for motors and sensors, was among those impacted.
Leading electric two-wheeler makers such as Bajaj Auto,TVS Motor, and Ather Energy have faced production challenges due to shortages of key raw materials. Industry executives noted that festive season sales could have been significantly higher if not for these supply constraints.
Rare earth magnets are essential for electric motors, offering high performance, compact size, and superior energy efficiency. China dominates this market, accounting for around 60% of global rare earth production and nearly 90% of refining capacity.
Last year, India ranked as the fifth-largest importer of rare earth permanent magnets and alloys from China, with imports totaling around 2,850 tonnes.
The import approval process remains complex, requiring certifications that the materials will not be used for military purposes. Companies must secure clearances from multiple Indian ministries and the Chinese embassy before obtaining final export approval from Chinese authorities.
More than 30 Indian companies are still awaiting import licenses. For now, China is issuing approvals only for civilian and consumer applications, as rare earth materials also have strategic and defense uses.
