NEW DELHI: The government is not talking to the Chinese authorities on the country's stricter export controls on rare earth minerals, a key component for manufacturing of cars, especially electric vehicles.
A team of the automotive industry is likely to visit China in 2-3 weeks’ time to have discussions on restoring supply of these minerals, however, no government representative will be part of the team, said an official in the Ministry of Heavy Industries.
Meanwhile, Minister of Heavy Industries HD Kumaraswamy informed the media that the government is monitoring the situation arisen due to disruption of rare earth minerals, and the government is exploring alternative sources for these minerals.
China's stricter export controls on rare earth elements have sparked concerns in India's automotive sector, especially among electric vehicle (EV) makers. Industry sources have said the current stockpiles of these critical metals may last only a few days, and delayed shipments could disrupt operations.
China has restricted exports of vital rare earths, including EV magnet components. These elements are essential for power steering, electric windows, and high-efficiency motors, making them indispensable for automakers.
The move has unsettled India's auto industry, which already depends heavily on Chinese imports for EV batteries and parts. India isn't alone in this struggle. The US and EU also rely on China, which controls nearly the entire supply chain of these materials. Currently, China supplies 85-95% of the world's rare earth metals, cementing its grip on advanced industries.
In a meeting with commerce ministry officials recently, India’s auto lobbying body - Society of Indian Automobile Manufacturers (SIAM)- said inventories at auto part makers are expected to run out by the end of May.
India's auto sector imported 460 tonnes of rare earth magnets, mostly from China, in 2024-25 and expects to import 700 tonnes worth $30 million this year, according to industry estimates.