India said on Thursday that it is in touch with China on the issue of rare Earth magnet supply, as Beijing has banned its exports.
This is the first time the Government of India has officially admitted to raising the matter with China, at a time when Delhi and Beijing are working towards normalizing the relationship after a six -year border deadlock.
Responding to the questions, Mea official spokesperson Randhir Jiswal said, “Yes, yes, we are contacting the Chinese side in Delhi as well as Beijing in Delhi and we are talking to them how we can streamline the issue of the supply chain on the rare earth.”
“We are in touch with the Chinese side on many economic issues and business issues and when anything needs to be done,” he said.
China, which controls more than 90% of global processing capacity for magnets used for automobiles, clean energy and home appliances, requires companies to obtain import permits from Beijing to restricted sanctions in April.
China’s export karb – means as a reaction to US President Donald Trump’s tariff – is likely to affect car manufacturers worldwide.
Indian Automobile Manufacturers (SIAM), an industry group, has demanded the intervention of the Government of India.
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While the rare earth magnets are an important component in the magnet electric vehicle motors, they are also required for parts used in car -driven cars such as power windows and audio speakers such as petrol or diesel.
And although measures taken by Beijing are done to focus on high-demonstration exports, short-end magnets are also being organized at the ports due to confusion around implementing restrictions.
India’s auto sector imported 460 tonnes of rare earth magnets from China in the financial year ended March 31, and according to industry estimates, expected to import $ 30 million this year.
Sources said that industry bodies and companies had raised the issue with the Ministry of Commerce, and it was extended to Chinese.
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On 2 April, Trump unveiled his policy of mutual tariffs, targeting most of the US business partners. Two days later, China responded by announcing a 34% tariff on all American imports, while also put an export ban on rare Earth.
After the restrictions in April, the export of Rare Earth Magnets of China fell rapidly in May. Framework agreed by the US and China also involves reducing the supply of rare earth.
Important minerals and rare earth elements, which are used in many major regions, are playing an important role in the economy, from electronics to renewal, automobile and defense. For example, lithium-ion batteries are used in lithium, nickel and cobalt. Disproceium and neodium, and telurium, indium and gallium are used in wind turbines and photovoltaic cells, respectively.
According to the International Energy Agency, China holds a 35% stake in Nicel’s refinement, 50–70% of lithium and cobalt and about 90% of rare earth elements. China not only dominates the production of rare earth, but also the most reserves. According to the US Geological Survey data, the country’s reserves are estimated at 44 million metric tons. The Brazilian reserves have been estimated at 21 million metric tons, 6.9 million in India, 5.7 in Australia, 3.8 million in Russia and 3.5 million in Vietnam.
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