China OKs supply for rare earth magnets to India: What exactly are these used for

India’s foreign ministry recently announced that Indian companies now have licenses to import rare-earth magnets from China.Rare earth magnets, derived from a group of 17 elements that are essential manufacturing components for electric vehicles, aircraft, electronics, and defense technology, have become a major point of leverage in trade tensions between China and several countries.The Foreign Ministry of India confirmed that some Indian companies have been granted licenses to import these magnets, along with certain conditions designed to prevent re-export or use in military applications.Rare earth magnets are known for their outstanding magnetic strength and high energy density. Despite the name including the word rarity, rare earth elements are actually relatively abundant but difficult to mine and refine, making the magnets valuable.

What are rare-earth magnets, and are they actually ‘rare’

Rare earth magnets are very strong permanent magnets made from alloys of rare earth elements like neodymium and samarium. Despite the name "rare earth," these elements are not actually rare in the Earth's crust but are hard to mine and process. Rare earth magnets produce much stronger magnetic fields than regular magnets, making them important components in many modern devices such as electric vehicles, wind turbines, and electronics.

Rare earth magnets are of two major types

Rare earth magnets, primarily Neodymium Iron Boron (NdFeB) and Samarium Cobalt (SmCo) magnets, are the most powerful permanent magnets available. They generate strong magnetic fields while being compact and lightweight, essential characteristics for modern technology applications. Neodymium magnets are the most common and widely used due to their high strength, while Samarium Cobalt offers exceptional resistance to oxidation and high temperatures, useful in specialised environments.

What are rare earth magnets used for

Rare earth magnets are used in many important and everyday technologies due to their immense strength that comes with their compact size. They are found in electric motors, such as those in electric vehicles and power tools, helping them run efficiently and powerfully. These magnets are also used in generators, including wind turbines, to convert mechanical energy into electricity. They can also be found in medical machines like MRI scanners for detailed imaging, in loudspeakers and headphones for better sound quality, and in electronic devices like computer hard drives.

Other uses include maglev trains, magnetic separators in recycling, and even in magnetic toys and gadgets.

Rare Earth magnets should be handled safely

Due to their powerful magnetic force, careful handling and usage are vital. Workplaces using these magnets must remain clean to avoid magnetic contamination from metal particles, which can impair their functioning. Smaller magnets should be handled gently to prevent damage, while larger ones require thorough safety protocols to protect personnel.

Maintaining these magnets in ventilated and dry conditions is crucial, as damp environments may cause rusting.

What comes with this deal

On October 30, 2025, India’s Ministry of External Affairs spokesperson Randhir Jaiswal announced that some Indian companies have obtained licenses to import rare earth magnets from China. According to a Tribune report, the four Indian companies licensed so far include DE Diamond, Hitachi Continental India, and Jay Ushin.

However, the licenses come with specific conditions that these magnets cannot be re-exported to the US or used for defense-related purposes.China’s dominance in rare earth magnet production is overwhelming; it controls about 90% of global production, owing largely to the complex technology required to process these minerals. This supply control has significant implications, particularly for India’s burgeoning electric vehicle industry, which demands around 870 tonnes of these magnets for FY 2025-26 alone, according to a TOI report, as said by the Ministry of External Affairs.