Minister of State Jitin Prasada.
Credit: PTI Photo
New Delhi: China's export restriction on key rare earth magnets has resulted in a supply chain bottleneck and impacted domestic industries, including electric vehicle manufacturers, Parliament was informed on Tuesday.
In a written reply to the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada said consultations have been held regularly with relevant stakeholders to explore measures to address the issue.
He also said that Ministry of Mines has been working to ensure supply chain resilience for critical minerals, including rare earth elements, which are used in producing rare earth magnets, as they are key materials for different sectors including EVs.
To develop cooperation with countries having rich mineral resources, the mines ministry has already entered into bilateral agreements with governments of Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, Cote D'Ivoire and international organizations such as International Energy Agency (IEA).
"The recent imposition of export restrictions on key rare earth magnets by China has resulted in a supply chain bottleneck, impacting the Indian industries including electric vehicle manufacturers," he said.
Further, Khanij Bidesh India Limited (KABIL), a joint venture set up with the objective to identify and acquire overseas mineral assets that hold critical and strategic significance, is engaged in this area by developing collaboration with various organisations based in different countries.