Indian firms continue to wait for an audience with the Chinese to push their case to import rare earth magnets even as the US on Wednesday claimed to have clinched a deal to resume supply for itself.
A delegation of auto industry executives from India is planning to visit China soon and a bunch of them have also received requisite visas. However, they are yet to get a go-ahead from the Chinese commerce ministry for a meeting.
By end-May 2025, nearly 30 import requests from Indian companies were endorsed by the Indian government, but none have yet been approved by the Chinese authorities, and no shipments have arrived.
Experts warn that production of electric four and two wheelers will be impacted if supply is not restored within 4-6 weeks. If the supply chain disruption continues further, production of cars run on petrol and diesel may be hurt as well.
China had put the restriction on April 4, a week before the US went ahead with imposing reciprocal tariffs on a number of countries, but targeting China in particular. One of the key demands from Chinese authorities before approving export of rare earth magnets, which find use in motors of battery-powered cars, is detailed end-use disclosures and client declarations, including confirmation that the products will not be used in defence or re-exported to the US.
With easing of trade tension between China and the US, industry experts hope that export restrictions on rare earth magnets to India may be eased as well.