Govt to support auto companies in procuring China magnets: Report

Rare earths have been at the center of the debilitating trade war between the US and China.

The government have stepped in to support the auto and component industry in procuring the rare earth magnets from China as companies scramble to get their import licences from Beijing, reported Times of India.

As import restrictions tighten on rare earth magnets many Indian companies are seeking import licences from Beijing.

As of mid-June, 21 Indian firms, up from 11, have applied to China’s commerce ministry for permits to import medium and heavy rare earth magnets, ET said.

This follows a directive issued by China on April 4, mandating exporters to obtain official clearance, including an end-user certificate from the buyer. The certificate must contain specific declarations, including that the materials will not be used in any form of weapons production.

The commerce department and the ministry of external affairs have been engaged in the process of seeking time for an interface of the Indian industry with representatives of the Chinese government. "We are mindful of the concerns of the industry, especially as manufacturing schedules are likely to be disrupted if the supplies do not resume in some time," the ToI report said quoting sources.

Some of the Indian companies that have filed applications include Bosch India, Marelli Powertrain India, Mahle Electric Drives India, TVS Motor, and Uno Minda. Sona Comstar, which was earlier rejected on procedural grounds, has reapplied and is among those now awaiting Chinese approval, ET reported, citing a senior industry official.