India: Not averse to giving ‘end-user certificate’ to China for sourcing rare earths

India may not be averse to providing an "end-user certification" to China for sourcing rare earths and rare earth magnets.

There are 17 rare earth elements, and they are key in products ranging from electric vehicles to aircraft engines and military radars. China wants to ensure that components made of these rare earths/magnets do not reach the US.

Responding to media queries on China’s demand seeking an end-user certification, Ministry of External Affairs spokesperson Randhir Jaiswal said, “India is respectful of all its international obligations under various arrangements that are in place for end-user certification.”

"Wherever it is internationally mandated or required as part of the various arrangements or international platforms, these certificates are provided," Jaiswal said.

On the question of rare earths, Jaiswal referred to the outcome of the meeting Prime Minister Narendra Modi had with Chinese President Xi Jinping in Tianjin, China, last month. “Both leaders underlined the need to proceed to reduce the trade deficit,” he said.

In the past few months, China has tightened its rare earth export controls, expanding restrictions on processing technology and spelling out its intention to limit exports to overseas defence and semiconductor users.

From India, China is reportedly seeking guarantees that the heavy rare earth magnets supplied by it would not be re-exported to the US and would be used only to meet local needs. China produces over 90 per cent of the world's processed rare earths/magnets.

China is looking at some deal with the US on heavy rare earth magnets and is unwilling to release supplies without a guarantee that there will not be any diversion.

Meanwhile at the domestic level, the National Critical Mineral Mission has been set up following the approval by the Cabinet in January. The mission comprises key interventions for increasing domestic capacity and building supply chain resilience in critical minerals which include rare earth elements.