Overview

• Since April, China has required exporters to obtain special licences and end-user certificates for seven rare earth magnets, leaving 21 Indian firms—including Bosch India, TVS Motor and Sona Comstar—awaiting approval.
• Industry executives warn that critical neodymium magnet stocks could deplete by early July, threatening production lines for electric and hybrid vehicles.
• Commerce Secretary Sunil Barthwal has described the export controls as a global measure and said both commercial and diplomatic channels are engaged to expedite approvals.
• India imports about 870 tonnes of rare earth magnets worth ₹306 crore annually from China, accounting for more than 90% of domestic supply and exposing the EV sector to geopolitical policy changes.
• To build resilience, New Delhi is fast-tracking alternative sourcing from Australia, Vietnam and the United States and accelerating domestic mining, refining and magnet-manufacturing under Production Linked Incentive schemes.