China asked for guarantee from India… Do not give these goods to America, only then we will supply, know the full report

Rare Earth Minerals from China: China wants a big guarantee from India. China says that to start supplying heavy rare earth minerals, India will have to ensure that these minerals will not be re-exported to the US. Due to this condition, talks between India and China regarding the supply of rare earth minerals have come to a halt, which is directly impacting India’s electric vehicle and defense sector.

China’s conditions and India’s preparations

China wants India to use these rare earth minerals only for domestic needs. These rare earth minerals are extremely important for electric vehicles, defense equipment and high-tech industries. Indian companies have submitted end-use certificates as per Chinese regulations, stating that these minerals will not be used to make weapons of mass destruction. However, China is still demanding further assurances, which is causing delays in supplies.

China’s control over rare earths

According to a report, China controls 90% of the global rare earth minerals production. China has also stopped sharing country-specific data, reducing supply chain transparency. In April 2025, China announced export controls on heavy and medium rare earth-related commodities, citing ‘national security’. According to these rules, only buyers licensed by the Chinese Ministry of Commerce can purchase these minerals. Although supplies to Europe and Southeast Asia are continuing, Indian sellers are yet to receive export licenses.

Supply of light rare earth started

After the Shanghai Cooperation Organization summit in August 2025, China resumed supplies of lightweight rare earth magnets to India. However, the supply of heavy rare earth minerals is still in short supply. Last year, India imported 870 tonnes of rare earth magnets worth Rs 306 crore. This decline is having a deep impact on electric vehicles and high-tech industries.

impact on india

India’s electric vehicle industry and defense sector is being badly affected by the acute shortage of rare earth minerals. Without these minerals, production in the automobile and high-tech industries could come to a halt. The Indian Commerce Ministry is working with companies to meet these conditions, but there are delays due to China’s additional conditions. This situation emphasizes that India needs to develop its own rare earth production and alternative supply chains to reduce its dependence on China.