Overview

• China’s May exports of rare earth permanent magnets plunged 52.9% from April, hitting their lowest level since early 2020 despite Beijing approving an unspecified number of export licences this month.
• Automotive, electronics and defence manufacturers report ongoing shortages and surging magnet costs as Chinese customs apply stricter scrutiny under the new controls.
• New Delhi is set to approve a ₹3,500–5,000 crore incentive scheme within weeks to boost domestic mining, processing and rare earth magnet production.
• Tata Motors says it has secured sufficient inventories and is collaborating with the government to source non-Chinese magnets, while firms like Conifer and SGEM pilot magnet-free motor designs.
• President Trump said China agreed to supply full magnets and necessary rare earths under a framework deal, though the agreement’s specifics and final approvals remain unconfirmed.