India hopeful for breakthrough: talks with China on rare earth export curbs advance

India is hopeful for a breakthrough in talks with China regarding Beijing's recent export curbs on rare earth magnets, which are vital for the automotive sector and other industries.

Commerce Secretary Sunil Barthwal emphasized that the restrictions, effective from April 4, are not targeted solely at India but apply to all countries. China currently controls over 90% of the global processing capacity for these magnets, which are essential in automobiles, home appliances, and clean energy technologies.

In response, India’s government-run Miniratna PSU, IREL, has ramped up production of rare earth magnets and metals such as Samarium-Cobalt, Cerium, and Lanthanum to reduce dependency on Chinese imports. IREL’s new rare earth magnet plant in Vishakhapatnam marks a significant step towards India’s technological self-reliance.

IREL recently reported its highest-ever mineral output at 5.31 lakh tonnes, a 3.3% increase from the previous year, and is expanding its footprint internationally through MoUs and talks with countries like Oman and Sri Lanka to explore and extract rare earth elements.

These developments underscore India’s strategic push to secure critical raw materials amid global supply chain challenges and geopolitical tensions. The ongoing dialogue with China remains crucial for easing export restrictions and ensuring stable access to rare earth magnets vital for India’s growing industrial sectors.

"These curbs are against all countries and not against India only," Barthwal said, reflecting cautious optimism about the talks’ potential to yield positive outcomes.

India is optimistic about progress in talks with China over export restrictions on rare earth magnets crucial for the auto sector. China, controlling over 90% of global magnet processing, imposed export curbs from April 4. India’s IREL is boosting domestic production to reduce reliance on Chinese supplies.