Several Indian companies have been granted licences to import rare-earth magnets from China, the Ministry of External Affairs (MEA) confirmed on Thursday. As per the media reports, the Indian companies to get the nod are Jay Ushin Ltd, De Diamond Electric India Pvt. Ltd, and the Indian units of German automotive component maker Continental AG and Japan's Hitachi Astemo.
Addressing a press conference, MEA spokesperson Randhir Jaiswal said, "Some Indian companies have received licences for importing rare-earth magnets from China. As far as there is a question of the recent talks and relaxations between the US and China, I will come back to you on how it's going to play into our domain."
He, however, did not elaborate on it.
Rare earths, a group of 17 elements essential for manufacturing cars, aircraft, electronics, and advanced weapon systems, have emerged as one of China's most potent tools of leverage amid ongoing trade tensions with the United States.
Although these minerals are found in several parts of the world, China holds a near-monopoly over the complex technology and infrastructure required to refine and process them into high-performance magnets, giving it a dominant position in the global supply chain.
Complete list of rare earth
The list of 17 elements is as follows: scandium, yttrium, lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium.
They are valuable because of their demand and industrial importance. These are called ‘rare’ because they are spread in very small amounts across the planet, making it challenging for countries to segregate them from other elements. Thus, mining becomes tricky, difficult and expensive.
What are they used for?
Rare earth metals are highly sought due to their unique properties, which enhance their usability, particularly in fast-evolving modern technology. These are used in a wide range of activities, including in the making of strong magnets, which are used in the automobile sector and wind turbines.
Additionally, rare earth metals find their usage in the manufacturing of computer screens, smartphones, as well as e-vehicles. They are also extremely essential in the defence industry, spanning the manufacturing of crucial equipment like radar and guidance systems. In the medical field, MRI machines need rare earth metals.
