What happened?
On 27 June 2025, the Ministry of External Affairs confirmed India had engaged China on rare earth supply issues following Beijing’s export restrictions. India imported 460 tonnes of rare earth magnets in FY 2024–25, mainly from China. The restrictions, enacted in April, disrupted shipments and affected sectors like electric vehicles and electronics.
Why it matters to India
With China controlling 90% of global rare earth processing, India’s outreach reflects strategic concerns over supply chain vulnerabilities. Rare earths are critical for EVs, defence, and clean energy. The diplomatic engagement underscores India’s need to secure essential mineral imports while working to diversify sources and build domestic capacity.