Indian and Japanese firms are together trying to find a way out to address the supply-chain constraints created by China’s restrictions on rare earth exports, a report by Mint said on June 30.
Over a dozen companies from Japan’s electric vehicles and battery industry are in Delhi to find a way out through tie-ups with Indian companies, the report said.
Some of the Japanese firms in the country are-Mitsubishi Chemicals, Sumitomo Metals and Mining, Panasonic and several others. All these companies are members of the Batter Association of Supply Chain (BASC), a Japanese industrial body, Mint said.
India is represented by Reliance and Amara Raja, the paper said citing sources.
The firms are likely to explore partnerships for lithium-ion batteries and for critical minerals such as lithium and graphite along with collaborations for a diversified supply chain to beat China’s dominance in these sectors.
China’s export curbs on rare earth magnets — used in everything from smartphones to electric vehicles — are causing delays in shipments of auto parts to India, worrying carmakers about major disruptions to production.
Earlier last week, the finance ministry had said that the government is intensifying efforts to secure critical mineral supplies amid growing global trade frictions.
(With agency inputs)
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