China seeks India’s assurance against re-export of heavy rare earth magnets to US

Rare earth magnets are key inputs in sectors like electric vehicles and defence.

According to a report in The Economic Times, China has sought stricter export control assurances, despite end-user certificates submitted by Indian firms.

The report added that China wants provisions similar to the Wassenaar Arrangement in the export control guarantee.

China controls 90 percent of the world’s production of heavy rare earth and the demand for stricter regulations has led to further supply delays.

The report said diplomatic engagement between the two countries in underway on the matter.

According to a senior government official, Chinese authorities are asking for additional assurances that these magnets will not be used for developing or processing weapons of mass destruction.

Notably, some companies obtained certification from the commerce ministry to support this requirement.

Although China resumed exports of light rare earth magnets to India following the Shanghai Cooperation Summit in August, shipments of heavy rare earth magnets remain suspended.

In 2024, India had imported 870 tonnes of rare earth magnets valued at ₹306 crore.

The continued disruption has strained high-tech sectors, particularly electric vehicle manufacturers, who rely heavily on these magnets.

The shortage has slowed progress in producing larger EVs, as substitute materials tend to reduce performance efficiency.

China imposed export restrictions on medium and heavy rare earth materials in April, citing the need to “safeguard national security.”

Only buyers who obtain a licence from China’s commerce ministry and furnish valid end-user certificates can access these products.

However, unlike Europe and Southeast Asia, Indian vendors have yet to receive export approvals.