China curbs on rare earth unite India, Japan firms
new delhi, June 30 -- Indian and Japanese companies are huddling in Delhi this week to figure a way out of the rare earth supply-chain logjam triggered by China's export curbs, according to two people aware of the matter.More than a dozen major Japanese players from the EV battery and critical mineral supply chain, including Panasonic, Mitsubishi Chemicals, Sumitomo Metals and Mining, Asahi Kasei and Nichia, are currently in India to explore partnerships with Indian companies. All these companies are part of Japan's industry body, Battery Association of Supply Chain.
From the Indian side, businesses like Amara Raja and Reliance are participating in discussions with the Japanese industry, one of the persons mentioned above said on condition of anonymity.
The talks are expected to focus on developing a diversified supply chain for lithium-ion batteries used in EVs and energy storage systems, as well as for critical minerals like lithium and graphite, with discussions likely to explore technological collaboration and joint R&D to counter China's dominance across these markets.
Mintcould not independently verify the full list of Japanese and Indian companies who will be part of discussions. Queries sent to the Japanese and Indian firms remained unanswered till press time. For Indian companies, the need to collaborate with other countries has become important as they struggle to source rare earth magnets from China, which controls 90% of their global supply and imposed restrictions on their exports this April. Alongside, several estimates peg China's global market share in lithium battery production at around 80%, while Japan is estimated to have about 10% share.
Experts, though, are sceptical. Srihari Mulgund, partner at consultancy EY-Partheneon, said Indian companies have to look for technology transfer and invest jointly in efforts to localize battery technology. But partnerships with Japanese companies can only offer limited benefits, he argued....
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