China's Rare Earth Clampdown Disrupts Supply Chains

China's new export restrictions on rare earth magnets have created bottlenecks affecting domestic industries in India, particularly electric vehicle manufacturers. The Indian government is engaging with stakeholders and enhancing cooperation with mineral-rich countries to counter impacts and ensure supply chain resilience for critical minerals.

China's recent export restrictions on rare earth magnets have thrown a wrench in global supply chains, causing significant disruption in Indian industries, particularly affecting electric vehicle manufacturers.

In response, Minister of State for Commerce and Industry Jitin Prasada informed Parliament that the government is holding regular consultations with stakeholders to mitigate the impact and find viable solutions.

Among the strategies to build supply chain resilience, the Ministry of Mines is forging bilateral agreements with countries rich in mineral resources and engaging with international organizations to secure access to critical minerals.

(With inputs from agencies.)