Impact of China's Curbs on Rare Earth Magnet Exports

Indian electric vehicle (EV) manufacturers are experiencing supply chain challenges due to China's restrictions on rare earth magnet exports, essential for electric motors and auto parts.

Dependence on Imports

• India relies heavily on imports for its rare earth elements (REEs), critical for green energy, electronics, and defense.
• This dependency highlights India's vulnerability to supply shocks.

Challenges in Mineral Supply Chain

• India faces threats from supply disruptions in lithium, cobalt, graphite, and nickel.
• Despite having reserves, India's exploration and mining efforts are slow and bureaucratic.
• Lack of processing capabilities makes India reliant on imports.

Global Context and China's Dominance

• China dominates in mining and processing of crucial minerals like lithium, REEs, cobalt, and graphite.
• Countries like the US, UK, EU, and India are aware of this dependency but are only now trying to reduce it.

India's Mineral Reserves and Exploration

• India has significant reserves of some minerals, such as cobalt and REEs.
• The country also needs to focus on new explorations and discoveries.

Need for Policy Reforms and Incentives

• There is a need for better-designed production-linked incentives (PLIs) to boost the processing sector.
• Addressing environmental concerns of processing industries is crucial.

Future Prospects: Natural Hydrogen and Thorium

• Exploring natural hydrogen and thorium is vital for future energy needs, highlighting India's potential.
• India must secure self-reliance in these sectors to avoid dependence on foreign capacities.

The author emphasizes that to avoid future vulnerabilities, India must hasten exploration, mining, and processing of critical minerals.