Overview
- China’s exports of permanent magnets plunged 51% year-on-year in April after Beijing imposed strict licence requirements.
- Indian automakers have yet to secure Chinese export licences and warn that production could grind to a halt by early June as inventories run out.
- New Delhi plans a high-level June 3 meeting to approve financial incentives and partnerships for homegrown rare earth magnet production.
- Over 90% of global rare earth magnet processing is controlled by China, creating a critical vulnerability for electric and conventional vehicle makers.
- U.S. and European automakers have urged Beijing to ease curbs, and China has signalled willingness to discuss export controls to stabilize supply chains.