India engaging with China to secure rare earth material supply: Report

A senior official said on Thursday that India has been engaging with China to ensure anuninterrupted supply of rare earth materials, which are important for various industries, including electric vehicles, wind turbines,and defence manufacturing.

The official told ANI that New Delhi is in touch with China for the procurement of permanent magnets, which are made from rare earth materials. The Centre isexploring alternative supply channels and domestic sources to reduce dependence on China.

"We are also finding ways and means by which the supply chain does not get impacted. Efforts are on," the official said.

In April this year, China announced that it would implement export controls on some rare-earth materials, which created shortages of these materials across the world, including in India. The export controls have impacted critical sectors in India, like defense and electronics manufacturing.

New Delhi wants to diversifyits rare earth supply through imports, mining, and global partnerships. It is also attempting to make diplomatic efforts robust to secure a stable and affordable supply of rare earth materials.

The government has kept aside a budget of Rs 1345 crore to provide an incentive to those thinking of producingrare earth magnets in India. The subsidy will facilitate investment for establishing processing facilities for companies to convert rare earth oxides into magnets.

New Delhi is also working with several countries to bolsteraccess to rare earth elements through initiatives like the India-US Critical Minerals Partnership and QUAD.