China Demands India’s Guarantee Before Supplying Heavy Rare Earth Minerals

International News:  China has put forward a direct condition to India before resuming supply of heavy rare earth minerals. According to officials, Beijing wants a written assurance that these supplies will not be shipped further to the United States. These minerals are critical for electric vehicles, defense equipment, and advanced technology. Without them, several industries face potential disruptions. China’s move reflects both economic control and geopolitical caution, as rare earths are seen as strategic resources in global trade wars.

Indian Companies Provide Certificates

Indian suppliers have already submitted “end-user certificates” to the Chinese authorities. These certificates state that the imported minerals will not be used in weapons of mass destruction. However, Beijing has demanded additional assurances specifically mentioning that none of these consignments will be re-exported to the U.S. Officials in India’s commerce ministry say compliance is underway, but China continues to delay shipments, citing national security reasons.

Impact on Strategic Sectors

Rare earth minerals are vital for sectors like electric mobility, renewable energy, and defense technology. Shortage of these materials can slow down EV production and impact military hardware manufacturing. India’s growing ambitions in high-tech industries are directly tied to the steady supply of such minerals. Any delay in shipments from China can push companies into higher costs and longer project timelines. The global competition over rare earths has placed India in a delicate balancing act between supply security and geopolitical diplomacy.

China Controls Global Supply

Reports suggest China controls nearly 90 percent of the global rare earths supply. With this dominance, Beijing wields significant influence over importing countries. Recently, China stopped publishing detailed export data to reduce transparency. India, along with several other nations, has been struggling to negotiate smoother supply chains. But China’s demand for guarantees has become a stumbling block, leading to strained trade discussions between New Delhi and Beijing.

Light Minerals Supplied, Heavy Ones Stalled

After the Shanghai Cooperation Summit in August, China resumed supply of light rare earth magnets to India. However, shipments of heavy rare earth minerals remain suspended. Last year, India imported 870 tons of rare earth magnets worth around ₹306 crore. The current pause is hitting Indian technology industries, particularly electric vehicle manufacturers, who now face production delays. Analysts believe these restrictions may push India to accelerate its search for alternate suppliers outside China.

China Cites National Security Laws

In April, Beijing introduced fresh export restrictions citing the need to protect national security. These rules applied specifically to medium and heavy rare earths, requiring importers to obtain special licenses from China’s Ministry of Commerce. While European and Southeast Asian buyers have managed to secure such licenses, Indian suppliers are still waiting. This uneven treatment has raised questions about whether political differences are also influencing trade decisions.

India’s Strategic Challenge Ahead

For India, the challenge is two-fold—ensuring uninterrupted industrial supply while carefully managing diplomatic ties with China and the U.S. Indian officials are exploring alternative sourcing options from Africa and Australia, but building reliable channels will take time. Meanwhile, Beijing’s insistence on guarantees signals that rare earths will remain a key bargaining chip in global geopolitics. For industries dependent on these resources, the uncertainty continues, highlighting the urgent need for India to build self-reliance in critical minerals.