The government is actively engaged in diplomatic and commercial negotiations with China to address supply restrictions on rare earth materials. Both the Ministry of External Affairs and the Ministry of Commerce are in discussions with their Chinese counterparts. Additionally, efforts are underway to assist the automotive industry in its negotiations with Chinese suppliers. China has implemented export controls globally, potentially requiring licenses, and the government is striving to support importers and automobile manufacturers in navigating these challenges. While there is optimism for a positive resolution, no timeline has been provided. The Indian automotive sector, especially the electric vehicle segment, is facing supply-chain disruptions due to China’s strict export restrictions on rare earth magnets, crucial for modern vehicles. This scarcity poses a threat to production, new model launches, and the industry’s growth ambitions.
Is the government negotiating rare earth magnet supplies with China?
