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2d ago

China Eases Magnet Export Curbs for Volkswagen-Linked Suppliers as Indian Carmakers Brace for June Shutdown

Beijing’s licensing rules, introduced in April in response to U.S. tariffs, have prompted New Delhi to convene a June 3 meeting on boosting domestic magnet production

A labourer works at a site of a rare earth metals mine at Nancheng county, Jiangxi province March 14, 2012. REUTERS/Stringer CHINA OUT. NO COMMERCIAL OR EDITORIAL SALES IN CHINA/File Photo
A mining machine is seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China July 16, 2011. Picture taken July 16, 2011. REUTERS/Stringer ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. CHINA OUT./File Photo
Miners are seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China July 16, 2011. Picture taken July 16, 2011.REUTERS/Stringer ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. CHINA OUT./File Photo
China's and U.S.' flags are seen printed on paper in this illustration taken January 27, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • China controls over 90% of global rare earth magnet processing capacity and introduced export licensing in April in response to U.S. tariffs
  • Reuters reports that Beijing has granted licences to some suppliers, including Volkswagen-linked producers, under its new approval regime
  • Indian automakers say they have received no licences and warn that vehicle production will halt in early June if magnet supplies do not resume
  • India’s Directorate General of Foreign Trade has approved around 30 end-use certificates to fast-track Chinese magnet shipments but customs delays persist
  • The Ministry of Heavy Industries will finalise incentives and public-private partnerships at a June 3 stakeholder meeting to scale up domestic magnet manufacturing