India engages China over rare earth export curbs impacting auto sector
India is hopeful of reaching a positive resolution in its ongoing diplomatic and commercial discussions with China over export restrictions on rare earth magnets—critical components for the automobile and white goods sectors, reports PTI.
China's recent export controls on
rare earth elements
and related magnets are affecting multiple global industries. In India, the auto and home appliance sectors have raised concerns over delayed supplies of essential components such as samarium, gadolinium, terbium, dysprosium, and lutetium. These rare earth elements are vital for electric motors, braking systems, smartphones, and even missile technologies.
Automakers Seek Government Intervention
The Indian
automobile industry
has urged the government to help expedite approvals from Chinese authorities for importing these magnets, which are integral to the production of passenger vehicles and other automotive components.
Commerce Secretary Sunil Barthwal confirmed that the export restrictions imposed by China are not India-specific, but affect all nations globally. "Since the impact is more pronounced in the auto sector, we are in active discussions with both the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Component Manufacturers Association of India (ACMA)," he told PTI.
According to Barthwal, the Indian government is facilitating talks between Indian automotive players and their Chinese counterparts. Simultaneously, the Ministry of External Affairs and the Department of Commerce have been in communication with the Chinese Ambassador in India to address the issue diplomatically.
"We are making all efforts to ensure that essential imports continue. I believe these diplomatic and commercial conversations will yield a positive outcome," Barthwal stated.
The Chinese government has implemented a new regime, effective April 4, requiring special export licences for seven rare earth elements and related magnets. In response, Indian suppliers have already initiated the process of seeking approvals through their Chinese vendors.
China currently controls over 90per cent of the global processing capacity for rare earth magnets, giving it significant leverage in global supply chains for clean energy, electronics, and automobiles.
India's ongoing dialogue with Beijing aims to minimize disruption to these critical industries and ensure a smooth flow of essential imports.
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