The Ministry of External Affairs (MEA) has said that China granted licences to certain Indian companies to import rare earth magnets. China’s decision to ease restrictions on supply of rare earth minerals to India came amid efforts by the two sides to normalise the bilateral ties that came under severe strain following the over four-year military face-off along the LAC in eastern Ladakh.
China’s decision to grant licenses to the Indian companies is being seen as part of overall efforts to rebuild the ties between the two sides. Rare earth minerals are considered vital for high-end technology products including electric vehicles (EVs), drones, and battery storage. China has been a dominant player in the critical minerals supply chain globally.
India has been looking at a steady supply of rare earth minerals to fuel its economic growth. China accounts for around 70 per cent of global rare earth mining that makes it a very dominant player in the global supply chain of the critical minerals.
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