Relief for Indian manufacturers as China agrees to resume rare earth, fertiliser shipments: Report

Chinese Foreign Minister Wang Yi assured External Affairs Minister S Jaishankar that Beijing will resume supplies of fertilisers, rare earth minerals and tunnel boring machines (TBM), reported Hindustan Times on Tuesday, easing concerns for Indian manufacturers hit by shortages.

Wang, who reached New Delhi on Monday, told Jaishankar that India-China relations are showing a positive trend towards returning to cooperation, state-run Xinhua reported.

Boundary talks were reportedly not discussed and will instead be taken up by National Security Adviser Ajit Doval during a Special Representative Dialogue today. Wang is also scheduled to meet Prime Minister Narendra Modi later in the evening.

Jaishankar reiterated that New Delhi’s position on Taiwan remains unchanged.

While talks were cordial, both sides acknowledged strains from US tariff policies, agreeing to deepen dialogue to offset uncertainty from Washington.

China, which processes over 90% of global rare earth minerals (REMs), introduced export licence requirements in April for seven rare earth elements and magnets, tightening global supply chains. India, which imports more than 70% of its REMs from China, has faced mounting disruptions.

Auto manufacturers have warned of severe production risks.

Bajaj Auto Managing Director Rajiv Bajaj said the company could see its electric vehicle (EV) production fall to zero in August due to shortages of rare-earth magnets, after already halving output in July. Its EV portfolio, including the Chetak scooter, has recently achieved market leadership.

Maruti Suzuki, India’s largest carmaker, has cut its April–September target for its maiden EV, the e-Vitara, to 8,200 units from 26,500, citing supply constraints. The company still aims to meet its full-year goal of 67,000 units by March 2026.

Rare earth minerals, including neodymium, dysprosium and terbium, are critical for EV motors, smartphones, missile systems and high-performance automotive components.

Analysts warn that prolonged supply disruption could weigh on India’s passenger vehicle growth, particularly in the fast-expanding EV segment.