India’s permanent magnet imports surged 88% in FY25, reaching 53,700 tonnes, just before China imposed export restrictions on rare earth magnets in April. With 93% of these imports coming from China, the move has triggered supply chain concerns across key sectors like EVs, wind energy, and defense.
🔴 Key Highlights:
- Imports jumped from 28,700 tonnes in FY24 to 53,700 tonnes in FY25, while the value rose only 5% to ₹1,744 crore, indicating falling prices.
- China’s new rules, effective April 4, require special export permits and non-defense usage declarations, disrupting global supply chains.
- India now faces a looming shortage, with just 2–3 weeks of magnet supply left, especially for neodymium-iron-boron (NdFeB) magnets used in EVs.
- Indian industry leaders may travel to China to negotiate supply resumption, while domestic production remains limited.
📢 Government Response:
- Commerce Minister Piyush Goyal called the situation a “wake-up call”, urging diversification of supply chains and accelerated domestic production.
- India Rare Earths Ltd (IREL) is being strengthened, and a new oxide-to-magnet plant in Hyderabad is expected to begin operations soon.
- Talks are underway with China, and auto manufacturers are seeking fast-track approvals for critical imports.
⚠️ Strategic Impact:
- India’s auto and electronics sectors are at risk, with production delays likely if supplies don’t resume.
- The crisis has sparked a push for self-reliance, with startups and innovators stepping in to build alternative magnet technologies.
👉 What do you think? Can India break free from China’s rare earth dominance? Drop your thoughts in the comments!
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