Diversifying Rare Earth Sources: A Global Imperative Amidst China's Export Controls

Neha Mukherjee warns global industries of a looming supply crisis due to China's rare earth export controls. Urging diversification, she highlights the urgency of securing alternative sources to combat potential disruptions impacting defense, e-mobility, and electronics sectors worldwide.

Amid growing concerns over reliance on China's rare earth exports, expert Neha Mukherjee stresses the urgent need for nations to diversify supply sources to prevent a severe global supply chain crisis. Mukherjee, a Research Manager at Benchmark Mineral Intelligence, emphasized the critical importance of reducing dependency on China, which controls a vast majority of rare earth resources.

China's imposition of new export controls on medium and heavy rare earth elements crucial for defense, clean energy, and high-tech industries has already disrupted global markets. Mukherjee warns that the situation could escalate to crisis levels within weeks if alternative supply routes are not established swiftly.

Highlighting the impact of the export curbs introduced by Beijing in April, Mukherjee explained that industries are facing significant production delays. She pointed out that process complications in securing export licenses have already led to widespread uncertainties and production halts. India, among other nations, is ambitiously moving to diversify its rare earth supply chains, investing in domestic mining and international partnerships, while earmarking significant funds to boost local magnet production capacities.

(With inputs from agencies.)