India in talks with China to ensure rare-earth magnets supply - foreign min
This story was originally published at 21:31 IST on 12 June 2025
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NEW DELHI – India is talking to China's Ministry of Commerce as well as its officials in Delhi to ensure the supply of rare-earth magnets, the Ministry of External Affairs said in a media briefing on Thursday. The rare-earth magnet shortage triggered by China's restrictions on its exports since Apr. 4 poses a critical threat to India's automobile industry, particularly its electronic vehicle ambition.
External Affairs Ministry Spokesperson Randhir Jaiswal said they are engaging with the Chinese side to "bring predictability" in the rare-earth magnet supply chain. "We are in touch with the Chinese Minister of Commerce...We are in touch with Chinese side, both here in Delhi as also in Beijing, to bring predictability in supply chain for trade, consistent with international practices," Jaiswal said.
According to reports, China controls over 90% of rare-earth magnet processing and 70% of production. The reports stated that India is heavily reliant on China for supply of rare-earth magnet imports, comprising over 80% of its needs.
Earlier, Commerce Minister Piyush Goyal had described the situation as a "wake-up call" for the country and world.
Even US President Donald Trump on Wednesday announced that his administration has reached a deal with China, amidst rare-earth magnet supply shortage. "Our deal with China is done, subject to final approval with President Xi (Jinping) and me. Full magnets, and any necessary rare earth, will be supplied, up front, by China," Trump said in a post on his social media platform Truth Social. Beijing's action has caused severe shortages and hindered production at many automobile and defence equipment factories in the US and around the world. End
Reported by Kuldeep Singh
Edited by Tanima Banerjee
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