China yet to resume rare earth exports to India despite Wang Yi’s assurance; EV makers face crunch: Report

Some are importing larger finished products that contain rare earth materials but are not covered by the curbs.

China has not resumed exports of rare earth elements and magnets to India, crucial for electric vehicles, smartphones, and consumer electronics, three weeks after Foreign Minister Wang Yi assured New Delhi that restrictions would be addressed, Hindu Businessline reported.

“None of our importers of rare earth magnets, including EV manufacturers, has received their supplies from China. Nor have we heard of any confirmations from Beijing on our applications getting expedited,” a source tracking the matter told Hindu Businessline.

India weighs fresh representation to China

Officials are considering approaching the Chinese Commerce Ministry to remind Beijing of the assurance Yi gave to External Affairs Minister S Jaishankar on August 19 regarding restoration of supplies, the report added.

“It is hoped that the bonhomie exhibited between Chinese President Xi Jinping and Prime Minister Narendra Modi at the recent SCO summit will do its bit in helping with the restarting of supplies,” another source told businessline.

Yi’s visit seen as part of post-Galwan outreach

During his August trip, Wang Yi agreed to ease restrictions on rare earth minerals, specialty fertilisers, and tunnel-boring machines, authoritative sources told businessline.

The visit was widely read as an attempt to stabilise ties strained since the Galwan Valley clash of 2020. Both India and China were also under fresh tariff pressure from the United States at the time.

Beijing stays silent on exports

Despite Yi’s assurances, Beijing has not issued any official statement on the resumption of rare earth shipments.

“Since the Chinese Minister gave a direct assurance on the matter to the Indian Minister, it was hoped that action would happen early despite no official statement on the matter,” a source told businessline.

China’s April 4, 2025, move to curb exports of seven rare earth materials and magnets had jolted Indian automakers, particularly EV and two-wheeler manufacturers, who depend heavily on these inputs.

Automakers resort to expensive stop-gaps

With no clarity from Beijing, Indian automakers are turning to costly workarounds. Some are importing larger finished products that contain rare earth materials but are not covered by the curbs.

“These are stop-gap arrangements and are expensive,” a source told businessline. Requests from the Indian auto industry for appointments with Chinese government officials have so far been ignored, the report added.