Continental India, Hitachi, Jay Ushin are three Indian companies that got the first nod to access rare earth magnets. They are also major suppliers to automakers like Maruti.
They acquired the licenses on the condition that the resources will not be exported to the US or used for defence purposes.
China’s dominance over rare earth magnets is a key leverage the Asian giant has held onto in their trade dealings with the US.
Rare earths resources is a key component for high-tech and clean-energy industries, especially in manufacturing electric vehicles (EVs), wind turbines, smartphones, and defence products.
It is also reason for the recent flare-up between China and the US this month, triggered by China’s revision in rare earth export rule. It mandated government approval for any shipment containing even trace amounts of rare earths, along with disclosure of their intended use.
It prompted US President Donald Trump to impose additional 100% tariff on China from November 1 onwards.
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First Published: Oct 29, 2025 6:20 PM IS
