Imports of permanent magnets from China, crucial for electric vehicles and consumer electronics, are expected to resume steadily as the government has begun issuing certificates required under new Chinese export rules. These certificates affirm that the magnets will not be used for defence purposes or re-exported to the United States, in line with Beijing’s latest restrictions on rare-earth mineral supplies.
Officials said that the Directorate General of Foreign Trade (DGFT), has issued nearly 30 certificates, one for each consignment. “China is seeking official assurance on the end-use of these magnets. The DGFT has started issuing the required documentation, and the process is now streamlined,” officials said.
The move follows urgent appeals from domestic automakers and electronics firms earlier this month. These companies warned that disruptions in the supply of rare-earth magnets from China risked halting production, especially in electric mobility and renewable technology sectors.
On April 4, China announced curbs on the export of seven key heavy rare-earth elements, including terbium, dysprosium, and gadolinium, as well as rare-earth magnets, intensifying global supply concerns. Domestic manufacturers, heavily reliant on Chinese imports, had only about two months’ worth of inventory, including shipments in transit.
“Without stable access, our supply chain could have collapsed within 60–90 days,” said Rajeev YSR, CEO of ThunderPlus, a domestic EV charger maker. Echoing this concern, Pratik Kamdar, CEO and Co-founder of Neuron Energy, said a shortage would have triggered price escalations and derailed the push for electric vehicle localisation.
India sources nearly 85% of its rare-earth magnets and refined rare-earth elements from China. In FY23, imports of REE-related products were valued at over $250 million, according to Nishant Lakkar, CEO of AAA Rating Consultants and Advisors.