China Restarts Exports After Suspension
After six months of uncertainty, China has reopened supplies of rare earth magnets to India, mainly to prop up key industries like electric vehicles, renewable energy, and consumer electronics. However, it has laid down certain conditions for such exports. The imported magnets will not be used for military purposes nor re-exported to the US. China had earlier stopped supplying these materials to the US over trade tensions between the two countries.
Import Permits Granted to Indian Companies
Following reports by an English news agency, four Indian companies have obtained permission to import rare earth magnets from China. The companies include Hitachi, Continental, J-Ushin, and DE Diamonds. The companies can start imports after getting the necessary permits from the Indian authorities. There is no complete clarity over the future availability of these magnets despite talks between the US and China during the past weeks hinting at improved relations between them.
Pending Applications and Approvals
Indian companies had already submitted EUCs to China as a part of the importation process. Of over 50 pending applications with India’s Ministry of Commerce, only four companies have been granted approval thus far. The Ministry of External Affairs has confirmed it officially.
Significance for India’s Industries
More than 90% of the world's geomagnetic materials are produced by China. India's electric vehicle sector is one of the biggest consumers of these components. Following China's ban on the export of medium and large geomagnetic particles from April 4, 2024, several countries, including India, were faced with severe supply disruption. The resumption of exports will hence help stabilize the supply chain in India and support the continuous industrial growth.
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