Rare earth supply crunch: China’s export ban impacts EV business, India seeks new partners

China’s export restrictions on key uncommon earth magnets have led to supply chain bottlenecks affecting home industries, together with electrical automobile (EV) producers, the federal government informed Parliament on Tuesday.In a written reply to the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada mentioned common consultations are being held with stakeholders to handle the disruptions brought on by China’s transfer, PTI reported.He mentioned the Ministry of Mines is working to strengthen supply chain resilience for important minerals, together with uncommon earth parts which are very important for producing magnets used throughout sectors corresponding to EVs.To diversify sourcing, India has signed bilateral agreements with nations wealthy in mineral sources corresponding to Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi and Côte d’Ivoire, in addition to with worldwide our bodies just like the International Energy Agency (IEA).“The recent imposition of export restrictions on key rare earth magnets by China has resulted in a supply chain bottleneck, impacting the Indian industries including electric vehicle manufacturers,” Prasada mentioned.Khanij Bidesh India Limited (KABIL), a three way partnership tasked with buying abroad mineral property of strategic significance, can be working with international organisations to safe various supply channels, he added.