Overview
- After a meeting in Busan, President Donald Trump said China agreed to delay by one year the rare earth export controls announced on October 9, though the stricter rules imposed in April remain in place.
- India’s Ministry of External Affairs confirmed that some domestic companies have received licences to import rare earth magnets from China, marking the first clearances since April.
- Industry reports identified Hitachi India, Continental India, DE Diamonds and Jay Ushin as recipients of approvals, with conditions that include no defense use, no re-export to the United States and verified end-user certificates.
- Indian EV and auto suppliers had warned of shortages, price pressures and production delays as inventories thinned under China’s earlier curbs, making the new licences a near-term stopgap.
- Analysts say the one-year pause creates a window to diversify supply chains, while India is pushing domestic capacity through a Rs 7,300 crore magnet production scheme targeting about 6,000 tonnes annually within seven years.