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, the government is supporting the automotive industry’s negotiations with Chinese suppliers. These export controls, which China has implemented globally, may require licenses for importers. The Indian automotive sector, especially the electric vehicle segment, is facing significant challenges due to these restrictions, which threaten to disrupt supply chains, impact production, and delay new model launches. While officials are hopeful for a positive resolution, no specific timeline has been provided.
Is the government negotiating with China over rare earth magnet supply issues?
