Indian Firms Submit End User Certificates To China To Secure Magnet Imports

(MENAFN- KNN India) New Delhi, Jun 16 (KNN) The Indian government has stepped in to support the country's auto and component manufacturers in securing critical rare earth magnets from China, which are essential for electric vehicles and other advanced automotive components.

These imports are vital to avoid disruptions in production, especially as domestic manufacturing capacities are still under development.

To meet Chinese export requirements, Indian companies have submitted End User Certificates (EUCs) affirming that the magnets will not be diverted for military or weapons use.

The government is assisting by facilitating communications between Indian industry representatives and Chinese authorities, with the Indian embassy in Beijing playing a key role in the process.

Commerce Secretary Sunil Barthwal has already held consultations with representatives from the auto sector. In the coming weeks, a delegation comprising members from key industry bodies such as the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Component Manufacturers Association (ACMA) is expected to visit China.

The government has clarified that its role is limited to facilitation, not direct government-to-government negotiations.

While India is working towards developing its own rare earth processing capabilities, the process remains challenging. Former Coal Secretary Alok Perti highlighted the complexity and high investment needed, especially due to environmental concerns around radioactive materials during extraction.

He also emphasised the importance of government support in the form of viability gap funding and international research collaborations.

The industry remains optimistic about the outcome, particularly in the context of recent meetings between Chinese Vice Foreign Minister Sun Weidong and Indian officials during his two-day visit.

(KNN Bureau)

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