India News | Export Restrictions on Rare Earth Magnets Impacting Supply Chain Bottlenecks
Get latest articles and stories on India at LatestLY. The recent imposition of export restrictions on key rare earth magnets has resulted in supply chain bottlenecks impacting the user industries, including auto and electronics sectors, Parliament was informed on Friday.
New Delhi, Jul 25 (PTI) The recent imposition of export restrictions on key rare earth magnets has resulted in supply chain bottlenecks impacting the user industries, including auto and electronics sectors, Parliament was informed on Friday.
In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry Jitin Prasad said, however, the commerce and industry ministry has not received any specific reports regarding cost escalation or project delays due to the shortage of rare earth magnets from the companies in Maharashtra's Aurangabad-Nashik-Pune auto belt and electronics clusters in Mumbai and Navi Mumbai.
"The recent imposition of export restrictions on key rare earth magnets has resulted in supply chain bottlenecks impacting the user industries, including auto and electronics sectors," he said.
China currently dominates the global rare earth magnet supply chain, controlling over 90 per cent of global processing capacity. These magnets are essential components across sectors like automobiles, household appliances, and renewable energy.
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The Chinese government has mandated, from April 4 onwards, that special export licences be required for seven rare earth elements and associated magnets.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)