The government has decided to set up an inter-ministerial coordination committee across ministries to track and ensure availability of rare earth elements (REEs), including magnets. The committee would include the ministries of Heavy Industries, Commerce and Industry, Coal, Mines, Steel, and the Department of Atomic Energy (DEA).

The committee will also explore various options, including tapping into new supply sources. A two-year timeline has been set for seeking “visible results”, sources told businessline.

The high-level meeting was co-chaired by HD Kumaraswamy, Union Minister for Heavy Industries and Steel, and G Kishan Reddy, Union Minister for Mines and Coal, to discuss issues surrounding rare earth magnets, rare earth elements and critical minerals on Tuesday.

Currently multiple sectors, but mainly the auto sector, have been hit due a shortage of rare earth magnets — a key EV component — procured from China. The shortage has been accentuated by export curbs imposed by Asia’s largest economy since early April. Stocks in India are expected to last till next month.

Sources privy to the meeting said both Ministers assessed the current domestic availability and probability of securing long-term supply assurance of raw materials.

“Both the Ministers have evaluated the technical feasibility and market readiness of intermediate products and strategic support required from the government of India to strengthen rare earth permanent magnet (REPM) ecosystem,” a senior official told businessline.

The official added that the government was also evaluating domestic availability of technology for core manufacturing and testing.

Union Minister Kumaraswamy, in a post on X, said: “This inter-ministerial effort will pave the way for India’s self-reliance in strategic materials crucial for EVs, electronics, defence and other sectors.”

India’s REPM imports is 3,600 tonnes as a country and for the the auto industry it is around 870 tonnes.

“Deliberated on the wide range of aspects of securing the supply chains of Rare Earth & Critical Minerals vital for the electronics industry, energy, and national security. Discussions focused on strengthening the value chain, from mining to refining to end-use,” said Reddy in a post on X.

There are over 35 companies in India that source rare earth magnets from China and supplying to various original equipment makers (OEMs), including Brakes India, Kyocera Avx Components, Hitachi Astemo Chennai Private, Continental Automotive, Minda Instruments, Sona Comstar, Uno Minda, and Varroc Engineering, among others.

Published on June 17, 2025