The Central government on 17th June 2025 initiated efforts to secure the supply chain for rare-earth materials, which are used in the manufacturing of electronics and electric vehicles (EVs), by holding meetings among various relevant ministries and assessing their domestic availability.

"This inter-ministerial effort will support India's aim to reduce dependence on imports for materials required in sectors such as electric vehicles, electronics, and defence," said HD Kumaraswamy, Minister for Steel and Heavy Industries.

The discussions are part of a broader response to China's curbs on permanent magnet exports, which could disrupt EV production in India.

Permanent magnets are made from rare earth elements (REEs), which are used in power windows, speakers, electric vehicle propulsion systems, and generators in renewable energy infrastructure, among other applications.

The meetings were co-chaired by Coal and Mines Minister G. Kishan Reddy and Steel and Heavy Industries Minister HD Kumaraswamy, with officials from the Atomic Energy and Commerce Ministries also in attendance.

In a post on social media, Reddy stated that the talks centred on strengthening the value chain, from mining and refining to end-use applications.

To facilitate domestic production, the government is planning amendments to the Mines and Minerals (Development and Regulation) Act under its critical minerals initiative.

Alongside regulatory changes, the Centre anticipates the beginning of small-scale, commercially viable domestic production of rare-earth permanent magnets later in 2025.