China starts giving license to Indian companies for rare earth magnets: most used in EV, electronics, medical
China has started issuing licenses to export ‘Rare Earth Magnet’ (REM) to Indian companies and foreign companies operating in India. According to government officials, China’s Commerce Ministry has started processing and approving these applications. Some of the companies included in the list include Jai Ushin, Indian units of German auto parts maker Continental AG, dealers or vendors of Mahindra, dealers or vendors of Maruti Suzuki, and suppliers or vendors of Honda scooters and motorcycles. Although officials say that it is still a slow start, the industry has heaved a sigh of relief as the process has started. Government officials said that Chinese authorities are gradually issuing licenses to Indian units of foreign companies along with Indian companies.
China has started issuing licenses for import of Rare Earth Magnet (RIM) into India. For some time, there was concern in the Indian automobile and electronics industry due to stoppage of supply of these important raw materials, which may now gradually go away. The Indian automobile industry had raised concerns with the Indian government over the restrictions imposed by China. He had said that the delay in approving the import of these important raw materials from China’s Commerce Ministry is adversely affecting the production of Indian automakers, including electric vehicles.
Rare earth magnets are essential for automobiles, electronics, medical devices and defense industries. They are most commonly used in the motors of electric vehicles (EVs). China currently leads the world in terms of production and capacity of rare earth magnets. Rare earth magnets are important for industries like automobiles and automobile parts, electronics, defense including medical industries. These magnets, made from elements like neodymium, dysprosium and terbium, make the motors smaller, lighter and more efficient than other options, which is essential to improve the range and performance of EVs.
The Government of India has spoken to the Chinese authorities several times over the last 6 months regarding the delay in processing applications for shipment of critical raw materials. During his visit to New Delhi in June, Chinese Foreign Minister Wang Yi had promised External Affairs Minister S Jaishankar that China would ease export restrictions on rare earth minerals and other commodities.
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