China’s Rare Earth Export Curbs Hit Indian Supply Chains

21 Aug 2025 CW Team

New Delhi, 19 August – Export restrictions imposed by China on key rare earth magnets have disrupted supply chains of Indian manufacturers, including electric vehicle (EV) producers, Minister of State for Commerce and Industry Jitin Prasada informed the Lok Sabha.

“The recent imposition of export restrictions on key rare earth magnets by China has resulted in a supply chain bottleneck, impacting Indian industries including electric vehicle manufacturers,” Prasada said in a written reply. He added that regular consultations are being held with stakeholders to identify measures to address the issue.

To strengthen supply chain resilience, the Union Ministry of Mines is working to secure access to critical minerals, including rare earth elements used in magnet production. The ministry has already signed bilateral agreements with countries such as Argentina, Australia, Cote d’Ivoire, Malawi, Mozambique, Peru, Zambia and Zimbabwe, as well as partnerships with organisations like the International Energy Agency (IEA).

Additionally, Khanij Bidesh India (KABIL), a joint venture established to identify and acquire overseas mineral assets of strategic importance, is actively pursuing collaborations with international organisations and mineral-rich countries.

These efforts aim to mitigate the risks posed by China’s export curbs and ensure the availability of essential materials for India’s rapidly growing EV and allied industries.

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