Rare Earth Battle Heats Up—India Races to Secure Critical Minerals!

India’s Foreign Ministry has confirmed ongoing discussions with China to bring predictability to rare earth exports, a critical issue affecting global trade. The move comes after China imposed export restrictions on key rare earth elements, disrupting supply chains for industries like automotive, electronics, and clean energy.

 

Commerce Minister Piyush Goyal described China’s curbs as a wake-up call, emphasizing India’s efforts to build alternative supply chains and reduce dependence on Chinese suppliers. The government is actively strengthening Indian Rare Earths Limited, aiming to boost domestic production and secure long-term supply agreements with other nations.

 

The restrictions, which took effect on April 4, require special export licenses for seven rare earth elements and related magnetic products. This has led to delays in imports, particularly for automotive manufacturers relying on rare earth magnets for EV components. Companies like Maruti Suzuki have already cut production targets, citing supply shortages.

 

India is also exploring new partnerships with Japan and the US to diversify sourcing. Meanwhile, industry leaders are urging the government to fast-track approvals for pending import requests. As diplomatic talks continue, businesses are bracing for potential long-term shifts in global rare earth supply dynamics.

 

Sources: Economic Times, MSN