Investing.com -- India has directed state-run miner IREL to halt its 13-year-old agreement on rare earth exports to Japan, according to a Reuters report on Friday. The decision aims to prioritize domestic supply needs and reduce India’s reliance on China.
During a recent meeting with automotive and other industry executives, Indian Commerce Minister Piyush Goyal instructed IREL to stop exporting rare earth materials, particularly neodymium, which is essential for magnets used in electric vehicle motors.
IREL is also working to develop India’s capacity for rare earth processing, an industry currently dominated by China globally. China has been using its control of rare earth materials as leverage in trade disputes, having restricted exports since April. These restrictions have created supply challenges for automakers and high-tech manufacturers around the world.