Like much of the world, India is heavily reliant on China for its rare earth supplies. In FY25 alone, we imported 870 tonnes of rare earth magnets, worth over ₹300 crore. China controls about 60–70% of global rare earth production and around 90% of the world’s refining capacity.

Decades ago, while other countries hesitated over environmental and social costs, China made a ruthless, calculated bet — sacrifice land, people, and air to dominate the rare earths future.

Now we are in that future and China has thrown a spanner in the works. It has imposed fresh restrictions on magnet exports, threatening to bring India’s EV ambitions to a grinding halt.

Indian importers are caught in a bureaucratic maze. Chinese suppliers now demand end-use declarations. That kicks off a long certification process — multiple approvals from Indian authorities, and even sign-off from the Chinese embassy in Delhi.

And after all that, final clearance must come from China’s commerce ministry. That’s the bottleneck. Several Indian auto component makers have jumped through every hoop — yet they’re still waiting.

So, where does that leave us?

Tune in.

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