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01-11-2025
Bureau Report
NEW DELHI: Indian companies have received licences for importing rare earth magnets from China, India’s foreign ministry said on Thursday, signaling some easing in Beijing’s export control.
Rare earths, a group of 17 elements that play a crucial role in cars, planes and weapons, have become one of China’s most powerful tools of leverage amid its trade tensions with the US.
India’s foreign ministry spokesperson Randhir Jaiswal announced the licencing decision at a media briefing but did not provide details on the companies that got approval, the number of licences issued or the conditions attached while rare earth elements are not scarce, China maintains a near-absolute dominance over the technology that processes the minerals into magnets.
Beijing has tightened exports of these processed materials to major economies, including India, this year in an effort to reinforce its geopolitical influence.
Earlier in the day, China agreed to delay the introduction of its latest round of rare earth export controls as part of a deal agreed between US President Donald Trump and Chinese leader Xi Jinping, but previous restrictions remain in place.
Beijing significantly expanded its rare earths export controls this month to include five new elements and added dozens of refining technologies to its control list. The rules also require foreign producers that use Chinese materials to comply with China’s export-control system.
China’s export control announcements on October 9 also included new restrictions on electric battery equipment and industrial diamonds.
The battery-related restrictions triggered a rush among global customers, including India’s Reliance Industries, opens new tab, to accelerate shipments before the early-November deadline.
China’s export controls on rare earths have highlighted the risks of being dependent on one supplier. The curbs, introduced in April, triggered shortages that threatened to disrupt global car production.
Earlier, Indian billionaire Mukesh Ambani’s Reliance Industries, opens new tab is rushing to get its orders of battery components out of China ahead of new export curbs, two people briefed on the matter said, as concerns mount worldwide about how Beijing intends to enforce its widening export control regime.
A team from Reliance has travelled to China to speed up the work, one of the sources said.
Reliance and China’s Ministry of Commerce did not respond to a request for comment. The people declined to be named due to the sensitivity of the situation.
Chinese companies are world leaders in electric battery technology and to maintain that competitive edge Beijing introduced new rules this month requiring companies to seek permission before exporting battery supply chain equipment. The new curbs take effect on Nov. 8.
At least a dozen other foreign customers of the Chinese battery sector are in a similar situation to Reliance, said the second source, who said some were foregoing quality assurance or other final stages of manufacturing to get goods shipped more quickly.
“Who cares if it hasn’t been painted yet or the screws haven’t been checked,” the second source said. “They are saying we’ll do the testing once it lands, just get it out the door.”
