Export restrictions on rare earth magnets impacting supply chain bottlenecks

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.

The Chinese government has mandated, from April 4 onwards, that special export licences be required for seven rare earth elements and associated magnets.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)