China’s move to restart rare earth exports to the US has eased pressure on American industries after nearly two months of restrictions. While some European firms have also secured limited export licenses to avoid production disruptions, India despite being a major importer of Chinese rare earths has not been granted similar relief.
Image Source: ip-quarterly/Thorsten Kirchhoff
China’s export ban, imposed on April 4, 2025, as a response to US tariffs, disrupted global access to critical rare earth materials such as scandium. Though used in small amounts, scandium is vital for producing high-performance aluminium-scandium alloys, which play a key role in electric vehicles, electronics, and defence industries.
China’s Ministry of Commerce said, “China will approve the export application of controlled items that meet the conditions in accordance with the law. The United States will cancel a series of restrictive measures taken against China accordingly.”
India’s exclusion from China’s rare earth export deal has sparked concern among manufacturers, as companies face shrinking inventories and continued uncertainty over export license approvals.
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