China asks India for guarantee to not re-export heavy rare earths it supplies to the US: Report
China controls 90 per cent of global production of heavy rare earth magnets and has stopped releasing country-specific export data.
- Oct 9, 2025,
- Updated Oct 9, 2025 2:17 PM IST
China has reportedly requested that India provide guarantees ensuring heavy rare earth magnets imported from China will not be re-exported to the United States before shipments can commence. Beijing wants these magnets, which are key inputs in sectors like electric vehicles and defence, to be used exclusively for domestic Indian needs.
According to a report in The Economic Times, Indian firms have submitted end-user certificates stating the magnets will not be used for manufacturing weapons of mass destruction, but China is seeking further export control assurances, similar to provisions under the Wassenaar Arrangement. India is a signatory to this international export control system, but China is not. The request for these guarantees has contributed to ongoing supply delays, despite diplomatic engagement between the two countries, the report added.
China controls 90 per cent of global production of heavy rare earth magnets and has stopped releasing country-specific export data. Negotiations remain stalled as China seeks guarantees against diversion, possibly linked to its trade talks with the US.
Indian suppliers have provided end-use certification documents as required by Chinese regulations. Beijing's demands include assurances that these magnets will not be diverted for uses such as manufacturing or processing weapons of mass destruction. A senior government official confirmed to the financial daily that companies, possibly with commerce ministry certification, are providing these assurances.
While China resumed supplies of light rare earth magnets to India after the August Shanghai Cooperation Summit, shipments of heavy rare earth magnets remain stalled. Last year, India imported 870 tonnes of rare earth magnets worth Rs 306 crore.
The ongoing shortage has impacted high-technology industries, with electric vehicle manufacturers facing significant constraints. Development of larger electric vehicles has been hindered, as alternatives to heavy rare earth magnets reduce efficiency.
China announced export controls on medium and heavy rare earth-related items in April, citing "safeguarding national security." Only buyers who secure a licence from China's commerce department and provide an end-user certificate are eligible to import these materials. Unlike supplies to Europe and Southeast Asia, export licences for Indian vendors have not yet been granted.
China has reportedly requested that India provide guarantees ensuring heavy rare earth magnets imported from China will not be re-exported to the United States before shipments can commence. Beijing wants these magnets, which are key inputs in sectors like electric vehicles and defence, to be used exclusively for domestic Indian needs.
According to a report in The Economic Times, Indian firms have submitted end-user certificates stating the magnets will not be used for manufacturing weapons of mass destruction, but China is seeking further export control assurances, similar to provisions under the Wassenaar Arrangement. India is a signatory to this international export control system, but China is not. The request for these guarantees has contributed to ongoing supply delays, despite diplomatic engagement between the two countries, the report added.
China controls 90 per cent of global production of heavy rare earth magnets and has stopped releasing country-specific export data. Negotiations remain stalled as China seeks guarantees against diversion, possibly linked to its trade talks with the US.
Indian suppliers have provided end-use certification documents as required by Chinese regulations. Beijing's demands include assurances that these magnets will not be diverted for uses such as manufacturing or processing weapons of mass destruction. A senior government official confirmed to the financial daily that companies, possibly with commerce ministry certification, are providing these assurances.
While China resumed supplies of light rare earth magnets to India after the August Shanghai Cooperation Summit, shipments of heavy rare earth magnets remain stalled. Last year, India imported 870 tonnes of rare earth magnets worth Rs 306 crore.
The ongoing shortage has impacted high-technology industries, with electric vehicle manufacturers facing significant constraints. Development of larger electric vehicles has been hindered, as alternatives to heavy rare earth magnets reduce efficiency.
China announced export controls on medium and heavy rare earth-related items in April, citing "safeguarding national security." Only buyers who secure a licence from China's commerce department and provide an end-user certificate are eligible to import these materials. Unlike supplies to Europe and Southeast Asia, export licences for Indian vendors have not yet been granted.