Magnet imports slide as auto cos eye shift away from China

Rare-earth magnet shipments, largely sourced from China, fall by more than half in Apr-Sept

- Ayaan Kartik

Automobile manufacturers are among the largest users of rare earth magnets.

(MINT)

The import of permanent magnets, primarily sourced from China, more than halved in the first six months of the financial year 2026 due to Beijing's export restrictions and Indian automakers beginning to permanently shift away from heavy rare earths.

Imports of finished and unfinished permanent magnets, which are largely made of rare-earth metals, fell to 16,281 tonnes during the April to September period, registering a 56% drop from a year earlier, according to the ministry of commerce data.

That’s the steepest fall in a six-month period in the last seven years. In the financial year 2025, the inbound shipments of such magnets grew 83% to nearly 53,000 tonnes.

Still, 88% of all permanent magnet imports came from China in the first half of the fiscal year, reemphasizing the country’s near monopoly on the global supply chain.

While a gradual shift to light rare-earth magnet imports cushioned Indian automakers, imports are expected to pick up from the second half as the Chinese government has started granting applications of Indian firms for heavy rare earths.