Magnetic Shift: India Pulls Away from China’s Rare Earth Grip, Attracts New Alliances

Image Source: Fote Machinery

India is seriously turning to alternative sources of rare earth magnets following China's recent imposition of export limits. The move has led to supply chain disruptions to critical industries like autos, clean energy, and electronics.

Effect of China's Export Restrictions

China possesses 90% of the world's supply of rare earth magnets and hence its clampdown is a major setback for India.

The controls require special export licenses and assurances that magnets will not end up in the defense or US industries.

Indian automakers and electronics producers are affected by production slowdowns due to inadequate inventory levels.

Government Response and Industry Strategy

India Commerce and Industry Minister Piyush Goyal assured that India is in talks with China while at the same time developing local alternatives.

Indian Rare Earths Ltd has been directed to increase local production in a bid to reduce reliance on imports.

The administration is considering production-linked incentives to encourage local manufacture of rare earth magnets.

Future Opportunities and Global Supply Chain Rebalancing

India is looking to diversify its supply of rare earths with global partners like Japan and the US.

Industry players are calling for quick growth of the nation's processing and refining facilities.

Experts recommend that India's long-term policy should stress self-reliance and abiding global associations.

Sources: Economic Times, Indian Express, Telegraph India, Financial Express, MSN, Business Today, Hindu BusinessLine.