India Steps Up Efforts to Secure Rare Earth Supply Amid China’s Export Curbs, US Tariffs

India has intensified talks with China to maintain a steady flow of rare earth materials—vital for sectors ranging from electric mobility and renewable energy to defence manufacturing—amid growing global supply concerns and fresh US tariffs on Indian goods. 

A senior government official confirmed that discussions are underway for the purchase of permanent magnets made from rare earth elements, even as New Delhi works on alternative sources to cut its reliance on Beijing.

“We are exploring all possible options to ensure that supply chains remain unaffected,” the official was quoted as saying to ANI. 

The urgency follows China’s April announcement imposing export controls on certain rare earth-related products, a move that has strained availability worldwide. Given that China accounts for over 90% of global rare earth magnet production, the restrictions have raised alarm bells in industries such as electronics, defence systems, and clean energy technology.

In response, India is pursuing a multi-pronged strategy—import diversification, domestic mining, refining capabilities, and international partnerships. 

It was earlier reported that New Delhi has been in discussions with countries including Australia, the US, and Vietnam under initiatives such as the India-US Critical Minerals Partnership and the QUAD framework. Plans are also in motion for a dedicated Production-Linked Incentive (PLI) scheme targeting magnet production and critical mineral recycling.

Collaboration with Indian Rare Earths Ltd aims to accelerate local exploration and processing, while policy reforms seek to encourage private sector participation. Recycling of critical minerals is being promoted to further reduce dependency on imports.

Earlier this year, the Union Cabinet approved the National Critical Mineral Mission (NCMM) with a Rs 16,300 crore outlay, alongside an expected Rs 18,000 crore investment from public sector enterprises. Coal and Mines Minister G. Kishan Reddy has also urged Indian companies to explore and mine critical minerals abroad to meet domestic demand.

Also Read: India Readies Rs 5,000 Crore Push for Rare Earth Magnets — A Bold Move to Cut China’s Grip | Exclusive | Republic World

Earlier, Republic Business has exclusively reported that the government is gearing up to roll out a dedicated Production-Linked Incentive (PLI) scheme worth Rs 5,000 crore to promote the domestic manufacturing of rare earth magnets — critical components used in electric vehicles (EVs), wind turbines, electronics, defence systems, and semiconductor equipment.

It is pertinent to note that rare earths are integral to a wide array of industries, from automobiles and household appliances to advanced defence systems. According to SBI data, India’s imports of rare earth elements and related compounds have averaged $33 million annually over the past four years. However, rare earth magnet imports are significantly higher—averaging $249 million per year, with FY25 imports reaching a four-year high of $291 million.