China Clears Rare-Earth Magnet Exports to India, Easing EV Supply Chain Woes

• China has reportedly started issuing licenses for rare-earth magnet (REM) exports to India, easing pressure on the EV and auto component sectors.
• Beijing had imposed export restrictions on REMs since April 4, disrupting production schedules for Indian automakers.
• Approvals are coming through for suppliers like Jay Ushin, Continental AG, and vendors of Mahindra, Maruti Suzuki, and Honda Scooters and Motorcycles.
• The Indian government engaged in talks with Chinese authorities, with Chinese Foreign Minister Wang Yi promising to ease restrictions.
• While a slow start, the breadth of future approvals will determine the long-term impact on India's supply chain uncertainty.

Why It Matters: China's clearance of rare-earth magnet exports offers a crucial breather for India's EV and auto supply chain.