Govt striving to resolve China’s rare earth import issue for India : Commerce Secretary
NEW DELHI : The Ministry of Commerce and Industry and the Ministry of External Affairs are making all efforts to ensure that essential imports of rare earth magnets resume in India amid an export ban by China, Commerce Secretary Sunil Barthwal said on June 16.
Talking to reporters at a trade data briefing, Barthwal said China’s move to control exports of rare earth magnets was a global response, and not just targeted against India. “The rare earth magnets issue is impacting the auto sector more, which is why we are engaged with Society of Indian Automobile Manufacturers and the Automotive Component Manufacturers Association of India. Commerce ministry is facilitating them to have discussions with their Chinese counterparts,” he said adding that both diplomatic and commercial discussions are going on with China on the issue.
China has brought a regime where “perhaps licences will be required, so we are facilitating our importers and our auto players in whatever way possible”, Barthwal said.
The number of Indian companies seeking import licences from Beijing have doubled in just two weeks. As of mid-June, 21 Indian firms, up from 11, have applied to China’s commerce ministry for permits to import medium and heavy rare earth magnets.
The Chinese government has put restrictions, with effect from April 4, mandating special export licences for seven rare earth elements and related magnets. Critical materials include samarium, gadolinium, terbium, dysprosium and lutetium, which are essential in electric motors, braking systems, smartphones and missile technology.
“We are making all the efforts to see that these essential items of imports can come to India…what I feel is that this diplomatic and commercial communication should yield a positive result,” he said.
China controls over 90 per cent of the global processing capacity for magnets, used across multiple sectors including automobiles, home appliances and clean energy.
Source : Moneycontrol
