India is urgently working to secure supplies of rare earth minerals after China imposed export curbs on seven key elements and finished magnets. These are crucial for making electric vehicles, smartphones, and appliances.
Commerce Minister Piyush Goyal called this a “wake-up call” and stated that India must act quickly to achieve self-reliance. The government is supporting Indian Rare Earths Limited to increase local production. Goyal also noted that India’s automotive and white goods sectors will face short-term issues, but believes these can become long-term opportunities with innovation and policy support.
A recent Crisil report warned that if magnet supplies are hit for more than a month, it could affect vehicle production and slow down the auto sector’s growth.
Globally, countries are scrambling to reduce reliance on China, which processes over 90% of the world’s rare earths. The US is investing $39 million in its own supply system.
India has also joined hands with Central Asian countries to explore new mineral sources. At a recent Delhi dialogue, they agreed to speed up cooperation on rare earths.
While India isn’t directly involved in the ongoing US-China trade talks, it’s preparing to play its hand in this high-stakes game.