Govt to curb rare earth exports

• Move aimed at safeguarding domestic supply

- NEHA ARORA & ADITI SHAH

INDIA HAS ASKED state-run miner IREL to suspend a 13-year-old agreement on rare earth exports to Japan and to safeguard supplies for domestic needs, two sources told Reuters, aiming to reduce India's dependence on China.

IREL also wants to develop India's capacity for rare earth processing, which is dominated globally by China and has become a weapon in escalating trade wars. China has curbed its rare earth materials exports since April, pressuring automakers and high-tech manufacturers worldwide.

In a recent meeting with auto and other industry executives, commerce minister Piyush Goyal asked IREL to stop its exports of rare earths, mainly neodymium, a key material used in magnets for electric vehicle motors, one of the sources said.

The commerce ministry, IREL and the department of atomic energy, which oversees IREL, did not immediately respond to requests for comment.

The sources declined to be identified because of the sensitivity of the matter.