India Suspends Rare Earth Exports to Japan to Boost Domestic Supply

India has directed its state-run miner, Indian Rare Earths Limited (IREL), to suspend its 13-year-old rare earth export agreement with Japan, aiming to secure critical minerals for domestic use and reduce dependence on Chinese imports amid China's export restrictions. The agreement involved exporting primarily neodymium, used in magnets for electric vehicle motors, to Toyotsu Rare Earths India, which processes and ships the materials to Japan. India produces about 2,900 tonnes of rare earths annually, with exports to Japan accounting for roughly one-third of this output, but lacks sufficient domestic processing and magnet production infrastructure. The Indian government, led by Commerce Minister Piyush Goyal, emphasizes boosting local processing capabilities to build a self-reliant rare earth supply chain while seeking an amicable resolution with Japan, given their friendly diplomatic ties. This strategic shift reflects broader global concerns over supply chain disruptions caused by China's dominance and export curbs, which have impacted industries reliant on rare earths, such as electric vehicles and renewable energy. India is also considering temporary export curbs on rare earth elements to stabilize domestic supply amid ongoing global supply crises.