According to two sources familiar with the matter cited by Reuters on June 13, the Indian government has asked the state-owned mining giant Indian Rare Earths Limited (IREL) to suspend its 13-year rare earth export agreement with Japan and prioritize domestic demand in an effort to reduce India's reliance on China for rare earth materials. IREL also plans to develop domestic rare earth processing capabilities with the aim of breaking China's global dominance in this strategic resource, which has become a key bargaining chip in escalating trade disputes. Since April this year, China has restricted the export of rare earth materials, putting pressure on global automakers and high-tech manufacturers. Indian Commerce Minister Piyush Goyal recently requested IREL to immediately stop exporting rare earth resources, especially neodymium, which is a key raw material for permanent magnets used in automotive motors, during meetings with executives from the automotive and other industries. Regarding this, neither the Indian Ministry of Commerce, IREL, nor its supervisory department, the Department of Atomic Energy of India, have commented on this matter. According to the cooperation agreement reached between the Indian government and Japan in 2012, IREL has been supplying rare earth materials to Fenshin Company, a subsidiary of Toyota Tsusho located in India. These critical raw materials are processed and purified by the subsidiary before being exported to Japan for use in permanent magnet manufacturing. Customs data from India shows that in 2024, Toyota Tsusho's subsidiary exported more than 1,000 tons of rare earth materials to Japan, accounting for one-third of IREL's mined 2,900 tons, even though Japan mainly relies on China for rare earth supplies. Currently, Toyota Tsusho and its subsidiaries have not commented on this matter either. IREL has been exporting rare earth materials due to the lack of domestic processing capabilities. However, with the recent interruption of Chinese material supplies, IREL hopes to retain rare earth resources domestically and attempts to expand domestic mineral extraction and processing capabilities. Sources familiar with the matter revealed that IREL is advancing the approval process for four new mining areas. Nevertheless, India may not be able to immediately cease exports to Japan as these supplies fall under the scope of bilateral government agreements. IREL hopes this issue can be "amicably resolved" as India views Japan as a "friendly" country. The Ministry of Economy, Trade and Industry of Japan stated in response to a Reuters inquiry: "We wish to avoid commenting on general questions regarding bilateral exchanges, not just about this matter." This article is an exclusive contribution from Observer Network and cannot be reprinted without permission. Original source: https://www.toutiao.com/article/7515642914635088420/ Disclaimer: The views expressed in this article are solely those of the author. Your opinions can be expressed through the 'upvote/downvote' buttons below.