World

India Secures Rare Earth Magnet Licenses From China: Will This Ease Global Supply Chain Fears?

India gets licenses to import rare earth magnets from China, amid Beijing’s export controls.

October 30, 2025, 12:39 PM

Irregular, cuboid chunk of dark gray metallic dysprosium showing a combination of rough, crystalline, and smoothly machined surfaces.

This 99.93% pure dysprosium sample is prized for its strong magnetic properties, making it essential for high-tech uses, including magnets, alloys, and nuclear reactor control rods. By Bjoern Wylezich / Shutterstock.com.

Executive Summary

Indian companies have secured licenses to import rare earth magnets from China, signaling a potential, limited easing of Beijing’s stringent export controls on these critical materials.

China is strategically tightening its rare earth export controls, expanding restrictions to include new elements and refining technologies, to reinforce its geopolitical influence amid global trade tensions.

Global over-reliance on China for rare earth processing and materials creates significant supply chain risks, underscoring the need for nations to manage dependencies on these critical components.

The Story So Far

China maintains a near-monopoly on the processing of rare earth elements, which are critical for high-tech manufacturing, and has increasingly tightened its export controls on these materials as a strategic tool to reinforce its geopolitical influence amid ongoing trade tensions, including a recent agreement between President Donald Trump and Chinese leader Xi Jinping. This strategic control has led to significant global supply chain risks, highlighting the dangers of over-reliance on a single supplier for essential industrial components.

Why This Matters

While India securing rare earth magnet import licenses from China offers a limited reprieve, it does not fundamentally alter the broader landscape of China’s strategic control over these critical materials, which continues to pose a significant risk to global supply chain stability and highlights the ongoing geopolitical leverage Beijing holds over high-tech industries worldwide.

Who Thinks What?

India’s foreign ministry and Indian companies view the securing of licenses to import rare earth magnets from China as a potential, though limited, easing of Beijing’s export controls.

China is increasingly tightening its exports of processed rare earth materials, utilizing these stringent controls as a strategic tool to reinforce its geopolitical influence amid ongoing trade tensions.

Global economies and international observers express significant concern over China’s near-monopoly on rare earth processing and its strategic use of these resources as geopolitical leverage, highlighting the inherent risks of over-reliance on a single supplier for critical components.

India’s foreign ministry announced Thursday that Indian companies have secured licenses to import rare earth magnets from China, signaling a potential, albeit limited, easing in Beijing’s stringent export controls on these critical materials. The decision comes amidst escalating global concerns over China’s near-monopoly on rare earth processing and its strategic use of these resources as geopolitical leverage.

The Announcement and its Context

Foreign ministry spokesperson Randhir Jaiswal confirmed the issuance of the licenses during a media briefing. However, he did not disclose specific details regarding the companies involved, the total number of licenses granted, or any conditions attached to their approval.

Rare earths, a group of 17 elements, are indispensable in the manufacturing of various high-tech products, including electric vehicles, advanced aircraft, and sophisticated weaponry. China maintains a dominant position in the technology required to process these raw minerals into finished magnets.

China’s Export Control Strategy

Beijing has increasingly tightened its exports of processed rare earth materials to major economies, including India, throughout the current year. This strategy is widely seen as an effort to reinforce China’s geopolitical influence amid ongoing trade tensions, particularly with the United States.

Earlier on the same day, China reportedly agreed to delay the introduction of its latest round of rare earth export controls. This agreement was part of a deal between President Donald Trump and Chinese leader Xi Jinping, though previous restrictions remain in effect.

In October, China significantly expanded its rare earths export controls to include five new elements and dozens of refining technologies. These new regulations also mandate that foreign producers utilizing Chinese materials must comply with China’s domestic export-control system.

The October 9 announcements also introduced new restrictions on electric battery equipment and industrial diamonds. These battery-related curbs prompted a rush among global customers, including India’s Reliance Industries, to accelerate shipments before an early-November deadline.

Global Supply Chain Risks

China’s earlier export controls on rare earths, implemented in April, led to significant shortages that threatened to disrupt global car production. These actions have underscored the inherent risks associated with an over-reliance on a single supplier for critical industrial components.

Outlook

While the new licenses offer some relief for Indian companies, the broader landscape of China’s strategic control over rare earths remains a significant factor in global supply chain stability. The situation continues to highlight the ongoing efforts by nations to manage dependencies on critical raw materials.