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China may relax rare earth export curbs for some chip companies

Economic Times

Economic Times · 3m ago

China may relax rare earth export curbs for some chip companies

China is considering easing rare earth export controls for certain Chinese and European semiconductor companies, according to state media. Initially, China placed export restrictions on rare earths, requiring all exporters to obtain licenses, causing delays and confusion. The potential relaxation follows discussions between Chinese officials and European semiconductor firms about accelerating approval processes to stabilize supply chains. European industries have expressed urgent concerns over potential production halts due to input shortages.

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Over 21,000 jobs in India's audio electronics sector are at risk due to China's restrictions on rare earth metal exports, as per ELCINA. China's export licensing on essential rare earth metals like terbium and dysprosium has disrupted global supply chains, impacting India's hearables and wearables industry. This shift has led to increased dependency on fully assembled imports from China, risking both direct and indirect jobs, particularly in regions like Noida and South India.

China flexes chokehold on rare-earth magnets as exports plunge in May

Livemint

Livemint · 2m ago

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Mahindra, parts maker Minda eye local rare earths production to cut reliance on China, sources say

Economic Times

Economic Times · 1m ago

Mahindra, parts maker Minda eye local rare earths production to cut reliance on China, sources say

Indian companies Mahindra & Mahindra and Uno Minda are planning to produce rare earth magnets locally, reducing reliance on China. This move aligns with India's incentives to boost domestic manufacturing of these critical components essential for electric vehicles and electronics. With China controlling 90% of global rare earth magnet production and recent export restrictions, India is focusing on building local capacity. Government partnerships and incentives are crucial for overcoming challenges in raw material availability and production capabilities.

India moves to conserve its rare earths, seeks halt to Japan exports, sources say

Economic Times

Economic Times · 2m ago

India moves to conserve its rare earths, seeks halt to Japan exports, sources say

India has instructed state-owned miner IREL to halt exports of rare earth elements to Japan, seeking to conserve the minerals for domestic use and reduce reliance on China. The rare earth materials, essential for producing electric vehicle motors, have been supplied under a 2012 agreement with Japan's Toyotsu Rare Earths India. With changes in global rare earth supply dynamics, India aims to bolster its domestic capabilities and negotiate the existing export agreements amicably.

India hopeful of positive outcome from talks over China's rare earth import issue, says official

Economic Times

Economic Times · 2m ago

India hopeful of positive outcome from talks over China's rare earth import issue, says official

India is engaged in discussions with China to resolve export restrictions on rare earth magnets, crucial for the auto sector. These restrictions impact domestic industries, including automobiles and white goods. Commerce Secretary Sunil Barthwal stated the curbs are not India-specific, and diplomatic and commercial negotiations are ongoing to secure essential imports. China's new policy requires special export licenses for certain rare earth elements, impacting global supply chains.

Auto sector pushes 3-step plan to cut China dependence for rare earth magnets

Economic Times

Economic Times · 2m ago

Auto sector pushes 3-step plan to cut China dependence for rare earth magnets

The Indian auto industry has proposed a three-step plan to reduce dependence on China for rare earth magnets, crucial for electric vehicles. This includes incentivizing local assembly and recycling, as well as securing supplies from countries like Australia and Vietnam. Industry leaders urge government engagement with China to ease export restrictions while developing downstream and upstream domestic processing capabilities. Tensions with China complicate the situation, though some approvals for European parts makers offer hope.

Easing of rare earths bottlenecks may clear way for Indian electronics firms - The Economic Times

Economic Times

Economic Times · 7d ago

Easing of rare earths bottlenecks may clear way for Indian electronics firms - The Economic Times

China easing export curbs on rare earth metals boosts India’s electronics industry by reducing supply chain disruptions and stabilizing costs. This benefits sectors like EVs and wearables, offering new opportunities for research and manufacturing. Despite the relief, the situation highlights India's need for self-reliance and strategic planning in securing these critical resources, as China dominates the rare earth market. India's initiatives like KABIL aim to enhance domestic capabilities and supply chains.

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Economic Times

Economic Times · 9m ago

China warns of 'necessary actions' if US escalates chip curbs

China issued a warning to the United States, stating that it would take necessary actions to protect its firms if the U.S. escalated chip control measures. Reports suggest that the Biden administration might unveil new export restrictions on Chinese chip companies. The U.S. has been tightening controls on semiconductors due to concerns about China's military advancements. China strongly opposes these measures, stating that they disrupt the international economic and trade order and damage cooperation between the two countries. China plans to protect the legitimate rights of its enterprises if control measures intensify.

Automakers urge Indian govt for diplomatic outreach to China for rare earths

Livemint

Livemint · 2m ago

Automakers urge Indian govt for diplomatic outreach to China for rare earths

The Indian auto industry is urging government intervention with China to address rare earth export issues critical for electric vehicle production. Despite obtaining visas, Indian automakers failed to meet with China’s commerce ministry and now seek government support to resolve the export halt and approval delays for new applications. Trade tensions with China threaten production cuts, emphasizing the urgency for securing necessary licenses and maintaining industry operations.

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