china has banned the supply of six rare earths, i.e. rare mineral magnets, from its country. This move has increased the restlessness of the whole world. Due to this move of china, India's auto industry has also come under crisis. These rare minerals are supplied to other countries by china on a large scale. In case the supply of rare earth stops, vehicle companies will not be able to produce. In the month of april, china had banned the export of rare minerals and magnets. Due to this, the vehicle and other sectors in india are also facing huge difficulties.
China's move increased trouble
This year on april 4, beijing has stopped the supply of 35 rare earth importers from China. The Chinese government did not approve the applications of these importers for rare earth magnets. However, in such a situation, if the company wants, it can apply again. The companies that import rare earth from china are Continental, Bosch india, etc.
This rare earth is used in everything from making weapons to cleantech. In such a situation, if any industry has been affected the most, then it is the electric vehicle industry. You can also guess how much dependence there is on china from the fact that china itself produces 90 percent of the world's rare earth magnets used in making vehicles.
How china has a monopoly in rare earth?
china has established rare earth mining and refining as a strategic industry. Till the early 2000s, china had many competitors around the world regarding rare earth. But one of the leading producers of rare earth, Mountain Pass Mine near California, had to be closed in 2002 due to environmental and economic pressure. Due to this, china has not only become the major supplier of rare earth magnets but also a global refinery for batteries and electronics, magnets and other useful items. However, amid China's dominance in rare earth, india is now focusing on increasing its availability here. For this, changes are being made rapidly in the mining laws. The previous day, Union Commerce and industry Minister piyush goyal himself, while talking to journalists in Germany, said that india is working on other options regarding magnets obtained from rare earth minerals.
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