Bilateral agreements with other mineral rich countries already done to offset crisis of rare earth minerals: Minister

India is facing a supply chain bottleneck given China’s imposition of export restrictions on rare earth magnets which has affected industries in India, including the manufacture of electric vehicles.

The Union government was responding to a question raised by Hyderabad parliamentarian Asaduddin Owaisi in the Lok Sabha on the recent imposition of export restrictions on key rare earth magnets by China.

Responding to the question, Minister of State for Commerce and Industry Jitin Prasada pointed out that in an effort to take stock of the situation and find a solution, the government has been engaging with different stakeholders.

“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 electric vehicles,” the reply reads.

The Ministry has also entered into bilateral agreements with countries with rich mineral resources such as Australia, Argentina, Malawi, Mozambique, Peru and Argentina.

A joint venture called Khanij Bidesh India Limited has been set up so as to identify and acquire mineral assets overseas that ‘hold critical and strategic significance’.