Auto cos working on plan to mitigate rare earths' shortage, says govt source
This story was originally published at 14:33 IST on 18 July 2025
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--Govt source: Auto cos working on plan to mitigate rare earths shortage
NEW DELHI - Indian automobile manufacturing companies are already looking at alternatives to tackle the shortage of rare earth minerals after China announced export restrictions, a senior government official said on Friday. These minerals find use in the production of electric vehicle batteries, renewable energy technologies, and clean energy applications.
Currently, China accounts for 60-70% of the global supply chain of the rare earth minerals. Restrictions imposed by China in April on the exports of rare earth minerals have caused a severe shortage and adversely impacted the production of many automobile manufacturing facilities around the world.
On Tuesday, Commerce Secretary Sunil Barthwal had said India's free trade agreements with Chile and Peru will help reduce reliance on China for rare earth minerals, which are crucial for the automobile, technology, defence and aerospace sectors. South American countries, including Peru and Chile, have significant geological potential for critical minerals, including copper and lithium.
Finance Minister Nirmala Sitharaman had earlier this month held talks with Peru's Foreign Minister Elmer Schialer Salcedo and expressed India's interest in importing the critical minerals from the country. End
Reported by Krity Ambey
Written by Sagar Sen
Edited by Vandana Hingorani
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