A headline from Live Mint is circulating online, “China blocks magnets for India alone, say auto firms.” This follows China’s recent move to restrict the export of rare earth magnets used in electric vehicles. The opposition, along with many social media users, is criticizing India’s foreign policy, alleging that while other countries continue to import rare earth magnets without issue, India is being singled out for restrictions.
Congress Kerala posted, ‘Don’t say that this is an attempt by his best buddy to route these magnets and sell them at an inflated price to our manufacturers through Mauritius, Indonesia, Singapore or Astralaya where he and his brother has business interests.’
брат wrote, ‘Who is the VishwaGuru?’
Katyusha claimed, ‘China has allegedly blocked rare earth magnets for India alone…’
Sandeep Manudhane and Harsh shared a similar claim.
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We began our fact-checking by reviewing the story published by Live Mint. We could not find the article on their website with the same headline as shown in the viral newspaper clipping, “China blocks magnets for India alone, say auto firms.” However, we did find what appears to be the same story published online with a different headline: “Indian auto stuck in queue as China clears rare earth magnets for others.”
The article states, “India’s auto industry has told the government that while China is approving rare earth magnet exports to other countries, applications from India are still pending,” quoting three industry executives.
The difference in headlines is important. The printed version makes it look like China is blocking exports only to India, while the online version suggests that China had blocked exports for everyone but has now eased restrictions for some countries, and India is still waiting its turn.
So, it appears Live Mint used a misleading headline in its newspaper version. Despite that, we will fact check the claim being made by social media users that China is targeting India alone.
According to a Reuters report from June 4, 2025, the export restrictions from China are affecting many countries. Some car parts factories in Europe have stopped production. Mercedes-Benz is also exploring options to deal with a possible shortage. The European auto supplier group CLEPA said several production lines have shut down and only one in four export license requests have been approved since April. Some were even rejected due to what they called “technical reasons.”
Another Reuters report from May 31, 2025, said global car companies are worried about a shortage of rare earth magnets from China. These magnets are used in many parts of vehicles, such as windshield motors and brake sensors. A letter sent on May 9 to US officials by a trade group representing companies like General Motors, Toyota, Volkswagen, and Hyundai warned that without these materials, vehicle production could stop.
The Indian Express on June 6, 2025, reported that Japan’s Suzuki Motors is planning to stop production of its Swift car model due to these restrictions, becoming the first Japanese automaker to be affected.
All these reports make it clear that China’s restrictions on rare earth magnet exports are causing problems worldwide, not just in India. Auto companies in the United States, Europe, and Japan are all affected. So, the claim that only India is facing China’s export ban is false.
China has stopped almost all exports since April 4 of seven types of rare earth metals and the strong magnets made from them. These metals include dysprosium, gadolinium, lutetium, samarium, scandium, terbium, and yttrium. This has caused serious shortages that threaten to shut down many factories in the US and Europe.
There are 17 rare earth elements. Although they are not extremely rare, they are hard to mine in large amounts. China mines 70 percent of the world’s rare earths and processes about 90 percent, including ores from Myanmar and even part of the US supply.
As per a government press release from April 6, 2023, India has the fifth-largest rare earth reserves in the world, found mostly in coastal areas of Kerala, Tamil Nadu, Odisha, and Andhra Pradesh. However, these reserves are low in quality and mixed with radioactive substances, making extraction difficult and expensive.
India has Light Rare Earth Elements like Neodymium and Praseodymium but lacks significant amounts of the Heavy Rare Earth Elements like Dysprosium and Terbium that are crucial for electric vehicle motors and energy-saving devices.
While India can mine and refine these elements up to the metal stage, it lacks industrial-scale facilities to turn them into alloys and magnets. Building this technology is challenging, and India currently depends on foreign collaborations. One such example is Toyotsu Rare Earths India in Visakhapatnam, which refines imported materials.
According to a recent Economic Times report, India is now planning to offer financial support to companies to make rare earth magnets domestically. The government is considering a plan to partly cover the cost difference between locally made magnets and cheaper Chinese imports. This would help make Indian products more competitive and boost local demand. Talks with industry officials are expected to continue next week.
| Claim | China is blocking rare earth magnet exports to India alone |
| Claimed by | Live Mint (print edition), Congress Kerala, and others |
| Fact Check | The claim is misleading. China’s export restrictions on rare earth metals have impacted the global supply chain, not just India. Major international companies such as Mercedes-Benz, General Motors, Hyundai, and Suzuki are also facing production challenges due to these restrictions, especially in the electric vehicle sector. |
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