**Summary:**
In response to Lok Sabha Unstarred Question No. 4309, addressed on August 19, 2025, regarding the impact of China's export restrictions on rare earth magnets, the Ministry of Commerce and Industry acknowledges the potential supply chain disruptions affecting Indian industries, particularly electric vehicle (EV) manufacturers. Consultations with relevant stakeholders are ongoing to mitigate these disruptions.
The Ministry of Mines is actively working to enhance supply chain resilience for critical minerals, including rare earth elements used in the production of rare earth magnets. To diversify sourcing and reduce reliance on Chinese suppliers, the Ministry of Mines has entered into bilateral agreements with Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, Cote D'Ivoire, and the International Energy Agency (IEA). Furthermore, Khanij Bidesh India Limited (KABIL), a joint venture company, is actively pursuing collaborations with organizations in various countries to identify and acquire overseas mineral assets of critical and strategic importance. The government is undertaking these initiatives to ensure a continued supply of these critical components to Indian industries.
Key Entities Referenced
China: Country that imposed export restrictions on rare earth magnets.
Indian industries: Refers to industries in India that are potentially affected by China's export restrictions, particularly electric vehicle manufacturers.
electric vehicle manufacturers: Specific industry in India highlighted as being impacted by the export restrictions on rare earth magnets.
rare earth magnets: Critical component for various industries, including electric vehicles, and the subject of export restrictions.
Ministry of Mines: Indian government ministry working to ensure supply chain resilience for critical minerals including Rare Earth Elements.
Australia: Country with which the Ministry of Mines has entered into bilateral agreements.
Khanij Bidesh India Limited (KABIL): Joint Venture Company set up with the objective to identify and acquire overseas mineral assets that hold critical and strategic significance.
SHRI JITIN PRASADA: The MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 4309
ANSWERED ON 19/08/2025
IMPACT OF CHINA’S MAGNET EXPORT CURBS ON INDIAN INDUSTRIES
4309. SHRI ASADUDDIN OWAISI
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased
to state:
(a) whether the Government has assessed the potential impact of China’s export
restrictions on rare earth magnets and related materials on Indian industries,
particularly on electric vehicle manufacturers;
(b) whether the Government is coordinating with relevant stakeholders to mitigate any
possible supply chain disruptions arising from these export curbs;
(c) whether the Government has taken any steps to diversify the sources of rare earth
magnets for Indian manufacturers to reduce dependence on Chinese suppliers; and
(d) if so, the details thereof along with the details of any ongoing or planned initiatives to
ensure the continued supply of these critical components to Indian industries,
including possible trade agreements or partnerships?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a) & (b): 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. Consultations have been held regularly with relevant stakeholders
to explore measures to address the issue.
(c) & (d): 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. In the interest of
developing bilateral cooperation with countries having rich mineral resources, the Ministry
1of Mines has already entered into bilateral agreements with Governments of a number of
countries such as Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi,
Cote D’Ivoire and International organizations such as International Energy Agency (IEA).
Further, Khanij Bidesh India Limited (KABIL), a Joint Venture Company 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.
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