rare-earth magnets
Three Indian companies have received the first approval to import rare earths from China. According to media reports, these companies include Continenter India, Hitachi and Jay Ushin. All three companies have received license to import rare-earth magnets with certain conditions.
The license has been given on the condition that these resources will not be exported to America or used for defense purposes. One reason for the recent tension between China and America is the amendment in rare earth export rules by China.
China had recently banned the export of rare earth magnets. Export restrictions starting from April 2025 have severely affected the global supply chain. In fact, China controls more than 80 percent of the world's rare earth production. Rare earth magnets are used in electric vehicles, mobile phones, military equipment and solar panels.
According to the Society of Indian Automobile Manufacturers (SIAM), 52 Indian companies import rare earth magnets from China. In the financial year 2024-25, India spent about ₹ 306 crore on the import of 870 tonnes of rare earth magnets.
India has about 6% of the world's rare earth reserves. India is emerging as a reliable option to reduce this global dependence. Although, at present India's production is less than 1% of the global level, but this situation is going to change rapidly.
States like Kerala, Tamil Nadu, Odisha, Andhra Pradesh and Gujarat have large reserves of these minerals, which opens the doors to future possibilities. China refines 80% of the world's rare earths, which means that no matter where the mine is, most of the countries in the world depend on China to make it usable.
