A report reveals that China has sought guarantees from India. China has requested that India guarantee that the import of rare earth minerals from China will not be re-exported to the United States once shipments resume.
China wants these rare earths to be used only for domestic Indian needs. Rare earths are a key input for electric vehicles and defense. Without them, operations in sectors ranging from the auto industry to the defense sector could be affected.
According to a report in The Economic Times, Indian companies have submitted end-user certificates stating that these minerals will not be used in the manufacture of weapons of mass destruction, but China is demanding further assurances regarding exports.
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China controls 90% of the US share.
The report further states that these guarantees are causing frequent supply delays despite political relations. China controls 90% of global production of rare earth minerals and has also stopped sharing country-based data. Negotiations between India and China regarding rare earth minerals are currently stalled because China wants guarantees from India.
Indian suppliers have provided end-use certificates as per Chinese regulations.
Indian suppliers have provided end-use certificates in accordance with Chinese regulations. China’s demands include assurances that these rare earths will not be used for purposes such as the manufacture or processing of weapons of mass destruction. A senior official stated that companies certified by the Ministry of Commerce are providing these assurances.
Supplies of Light Rare Earth Minerals Continue
After the Shanghai Cooperation Summit in August, China resumed supplies of light rare earth magnets to India, but supplies of heavy rare earth minerals remain suspended. Last year, India imported 870 tons of rare earth magnets worth ₹306 crore (approximately $3.06 billion). This current shortage has impacted high-technology industries, and electric vehicle manufacturers are facing significant challenges.
China announced export controls on medium and heavy rare earth items in April, citing “protecting national security.” Only buyers licensed by China’s Commerce Department are eligible to import these items. Indian sellers, aiming to supply Europe and Southeast Asia, have not yet been granted export licenses.
