India eyes alternatives after China’s rare earth magnet export ban

Bern: In a significant geopolitical development, India is preparing to reduce its reliance on Chinese imports of rare earth magnets, following Beijing’s recent export restrictions. These magnets are critical components in electric vehicles, electronics, wind turbines and defence applications. 

Speaking in Bern on June 9, Commerce and Industry Minister Piyush Goyal confirmed that India is actively working with industry stakeholders to develop domestic capabilities and secure alternative supply chains. 

“India is actively working with stakeholders to develop domestic capacity and reduce dependence on China,” Goyal said. “People are realising the impact of this move and recognising the need for resilient supply chains.” 

He added that while temporary arrangements to resume some imports from China are under discussion, the long-term goal is to build a sustainable and self-reliant ecosystem for rare earth materials. This effort will involve ramping up R&D, promoting private sector participation, and exploring international collaborations. 

Goyal described the situation as a “wake-up call” for India and the world. 

“Obviously, there are issues around the stopping of permanent magnets from China to India, which will affect our auto sector, especially two-wheelers and other industries,” he noted. 

“Some companies have submitted applications [to continue imports], and we hope good sense will prevail, and approvals will be granted. But at the same time, we are working on several tracks — sourcing from alternate countries, and accelerating our own production capacities, including through Indian Rare Earths Ltd,” Goyal explained. 

The minister underscored the broader global implications, calling for greater diversification of supply chains. 

“This is a wake-up call for those who have become overly reliant on certain geographies. It’s a reminder to the world that you need trusted partners in your supply chains. India is now becoming that alternative. With India, the world knows they will not have to suffer such disruptions,” he said. 

The remarks come amid rising global concerns over the weaponisation of trade and resource control, especially in strategic sectors. As India pursues strategic autonomy in critical technologies, rare earth materials are set to play a central role in its industrial and geopolitical trajectory.