NEW DELHI: Govt on Thursday announced "some Indian companies" have got approval from China to import rare earth magnets, to be used in automotive and electronics industries.
MEA spokesperson Randhir Jaiswal said 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.
Rare earth nod comes with no-export rider
MEA spokesperson Randhir Jaiswal on Thursday confirmed that some Indian companies have received licences for importing rare earth magnets from China, while responding to questions on the matter.
"As far as the question of the latest talks and relaxations that have happened between the US and China (and) as to how it is going to play into our domain, I will come back to you. We have yet to look at it. I am not aware of the technicalities... But I do confirm that Indian companies have received licenses for importing rare earths from China," he said.
Jaiswal, however, did not give details of the companies that have received permission. Industry sources said the companies include those that supply components to the automotive and electronics industries.
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 govt to take up the matter with China.
Rare earth magnets are the strongest type of permanent magnets commercially available. Their high magnetic strength and resistance to demagnetisation make them indispensable in a range of applications, especially where weight and space are constraints.
According to experts, these magnets are made primarily from rare earth elements like neodymium, praseodymium, and dysprosium - materials that allow for powerful magnetic properties essential in miniaturised and energy-efficient devices. They are typically made from alloys that contain rare earth elements. The most commonly used rare earth magnet is the neodymium-iron-boron (NdFeB) magnet.
China is estimated to account for about 70% of global rare earth metals mining and holds nearly 90% of the world's rare earth magnet's production. One of the biggest reasons that China dominates the rare earth magnet industry is its control over the entire supply chain, including mining of rare earth ores, separation and refining of rare earth elements (a complex and environmentally sensitive process), and alloy production and magnet manufacturing.
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.
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