China's magnet export curbs impacting Indian industries, says government

New Delhi, Aug 19 The curbs imposed by China on key rare earth magnets are impacting the Indian industries, including electric vehicle manufacturers, the Parliament was informed on Tuesday.

Replying to a question by AIMIM MP Asaduddin Owaisi in the Lok Sabha, Minister of State for Commerce and Industry, Jitin Prasada, said the Ministry of Mines has been working to ensure supply chain resilience for critical minerals.

Owaisi wanted to know if the government has assessed the potential impact of China’s export restrictions on rare earth magnets and related materials on Indian industries, particularly on electric vehicle manufacturers.

"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. Consultations have been held regularly with relevant stakeholders to explore measures to address the issue," the minister said in his reply.

"Ministry of Mines has been working to ensure supply chain resilience for critical minerals, including Rare Earth Elements, which are used in producing Rare Earth Magnets, as they are key materials for different sectors, including electric vehicles," he added.

On whether the government has taken any steps to diversify the sources of rare earth magnets for Indian manufacturers to reduce dependence on Chinese suppliers, Jitin Prasada that in the interest of developing bilateral cooperation with countries having rich mineral resources, the Ministry of Mines has already entered into bilateral agreements with governments of a number of countries such as Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, Cote D’Ivoire and International organizations such as the International Energy Agency (IEA).

"Further, Khanij Bidesh India Limited (KABIL), a Joint Venture Company set up with the objective to identify and acquire overseas mineral assets that hold critical and strategic significance, is engaged in this area by developing collaboration with various organisations based in different countries," he added.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor