12 hours ago
- Automotive
- New Indian Express
Rare earth magnet: Govt in talks at diplomatic, commercial levels
The government is engaged in both diplomatic and commercial discussions with China on supply restrictions on rare earth material, according to government sources. While the ministry of external affairs (MEA) and Ministry of commerce are in talks with their counterparts in China, the government is also facilitating the auto industry's talks with the Chinese suppliers, said a commerce ministry official.
'These are export controls, which China has invoked for the whole world. They have brought a regime where perhaps licenses will be required. So, we are facilitating our importers and our automobile makers in whatever way possible,' said the official, adding that these diplomatic and commercial communications should give a positive outcome.
Though, he refused to give a timeline for finding a solution to the problem.
The Indian automotive sector, particularly the electric vehicle (EV) segment, is grappling with a supply-chain disruption due to China's stringent export restrictions on rare earth magnets. These low-cost yet critical components are indispensable for modern vehicles, and their scarcity threatens to impact production, new model launches, and the industry's ambitious growth trajectory.
