Automakers press Centre to step in for rare earths

Having failed to secure a meeting with China's commerce ministry despite receiving visas, Indian automakers have now sought the central government's intervention, according to two industry executives aware of the matter.

- Ayaan Kartik & Nehal Chaliawala

The issue: China has paused exports to India of rare earth minerals, which are key to electric vehicle (EV) production, and are also not approving Indian companies' fresh applications for their export. If the minerals don't start showing up on Indian shores soon, it is likely to hit the auto industry hard, especially EVs.

Indian EV makers have now urged the Centre to engage Beijing through diplomatic channels, mirroring American efforts. On Wednesday, US President Donald Trump announced on his Truth Social platform that the US and China have struck a "deal" that will see China resume supply of magnets and rare earths to the US.

"An escalation from Indian authorities might be required," said one of the executives cited above on the condition of anonymity. "What would we do with the visa if there is no meeting fixed?" An appointment with China's ministry of commerce is key, since it is responsible for the restrictions on the export of rare earth minerals and magnets.