China’s decision to impose export restrictions on key rare earth magnets has created supply chain challenges and affected several domestic industries, including electric vehicle manufacturers, Parliament was informed on Tuesday.
In a written reply to the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada confirmed that the government has been holding consultations with relevant stakeholders to identify solutions to the problem.
He highlighted that the Ministry of Mines has been taking measures to strengthen supply chain resilience for critical minerals, including rare earth elements. These minerals are essential for the production of rare earth magnets, which play a crucial role in multiple sectors, especially electric vehicles.
To secure access to these vital resources, the Ministry of Mines has entered into bilateral agreements with mineral-rich countries such as Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, and Cote d’Ivoire. The ministry has also engaged with international organisations, including the International Energy Agency (IEA), to enhance cooperation in this field.
Prasada stated: “The recent imposition of export restrictions on key rare earth magnets by China has resulted in a supply chain bottleneck, impacting the Indian industries including electric vehicle manufacturers.”
Additionally, Khanij Bidesh India Limited (KABIL), a joint venture established to identify and acquire overseas mineral assets of critical and strategic importance, has been actively working to develop collaborations with organisations in various countries. Its efforts are aimed at ensuring a steady supply of essential minerals for India’s long-term needs.
China is one of the world’s largest suppliers of rare earth materials, and its restrictions have raised concerns across global industries that rely on these resources. India, like several other countries, is now focusing on building international partnerships to reduce its dependence on a single source and safeguard its industrial growth.
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