China permits Indian firms to import rare earth magnets

Some Indian companies have got approval from China to import rare earth magnets to be used in the automotive and electronics industries, said MEA spokesperson Randhir Jaiswal. The licenses have been issued, which will enable access to the magnets whose procurement had been stopped after China put curbs on their sale earlier this year. However, the imports come with certain restrictions. These include conditions that the magnets cannot be exported to the US, and cannot be used for defence-related industries. The curbs have impacted the production of automobiles, especially electric cars and two-wheelers, with companies petitioning the government to take up the matter with China. Just in the Indian auto industry alone, about 870 tonnes of rare-earth magnets are required to be imported in FY 2025-26 out of the country’s estimated overall requirement of 3,600 tonnes, as per a report.

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