Diplomatic and commercial discussions are ongoing to secure rare ground elements from China

With modern restrictions from China on rare ground elements exports, India has climbed all of the diplomatic and commercial efforts to help its local industry secure these materials, which are decisive for the auto industry, especially for the manufacture of electric cars (EVS) and hybrid.

On Monday, Trade Minister Sonil Bartawal indicated that China’s control of rare land magnet exports is a “global response” and not aiming at any specific country like India.

Since it affects the auto sector more, local industry associations such as SIAM and ACMA hold consultations with their Chinese counterparts. Meanwhile, the Ministry of Trade and the Ministry of Foreign Affairs participate with China. “Diplomatic and commercial discussions are taking place. We are making all efforts to ensure imports of these basic elements to India,” Bartawal told reporters.

In April this year, China imposed strict export controls on seven rare ground elements used to produce high -performance magnets, which resulted in disruption of supply chains. India relies heavily on these Chinese imports, and the auto sector is currently facing challenges.

A recent report issued by CareDGE noted that China dominates 70 % of rare ground elements (ReE) and 90 % of the treatment. “The delay in ReE’s shipments for the original Indian equipment manufacturers may affect the production of the electric motor, the internal combustion motor (ICE) and the production of hybrid vehicles starting from July 2025, especially high -end models that depend on ReE’s -based technologies.”

Meanwhile, the government is also watching the constant conflict between Israel and Iran, and the shipping lines and container societies will meet this week to discuss whether there is any impact on India’s trade. “We will try to see the best way to address any problem posed,” said Bartawal.

Iran dominates the Strait of Hormuz and according to reports, it is looking to close it. “… a possible escalation of the Israeli Israeli conflict may harm the global energy trade because Iran, despite international production sanctions, controls the Strait of Hormuz, a major selection of global oil trade that witnessed nearly 27 % of the volume of maritime oil trade in 2023,” noting a quantitative report.