Key Facts
• June 13, 2025: Reuters reports India plans to halt rare earth exports to Japan.
• India’s rare earth reserves rank 5th globally; focus shifts to domestic processing.
• Rare earths, including neodymium, are vital for EV and hybrid vehicle motors.
• India’s IREL has supplied rare earths to a Toyota subsidiary since a 2012 agreement.
• April 2025: China tightened export controls on seven rare earth types.
• India aims to reduce reliance on China by expanding domestic mining and processing.
• Commerce Minister Piyush Goyal requested IREL to prioritize domestic supply.
• Neodymium magnets are essential for EV and hybrid vehicle motor production.
Summary
India is reportedly planning to halt rare earth exports to Japan, redirecting resources to domestic supply. Rare earths, such as neodymium, are critical for electric and hybrid vehicle motors. This move aligns with India’s strategy to reduce dependence on China, which tightened rare earth export controls in April 2025. India, ranked fifth globally in rare earth reserves, seeks to expand its mining and processing capabilities. Since 2012, India’s state-run Indian Rare Earths Limited (IREL) has supplied rare earths to a Toyota subsidiary under a bilateral agreement. However, Commerce Minister Piyush Goyal has urged IREL to prioritize domestic needs. This policy shift reflects India’s broader goal of strengthening its rare earth industry while addressing global supply chain challenges.
