India’s auto industry may have a crisis, because China has made a deal with the US on the Rare Earth (China-Rare Earth Elements Deal), but India’s application has been rejected not one, but twice. In such a situation, if India does not get Rare Earth, then EV sectors will suffer the most in the auto industry. Although there has been a discussion about the rare meaning between Indian Ambassador Pradeep Kumar Rawat and Chinese Deputy Foreign Minister Sun Waidong, but no information has been revealed about the deal.
On the other hand, US President Donald Trump on Wednesday announced a trade deal agreement between the US and China. Under this agreement, China will now give rare economy to American companies. In return, Chinese students will allow students to study in colleges and universities. Trump also said that there has also been a deal with China regarding TRUMP TARIFF, which is getting 55% profit to the US, while China will get only 10% profit.
What is rare meaning material?
- Rare Earth Element is a total of 17, including minerals such as lanthanem, neodium, prasiodium. It is not a common mineral but special magnetic and electronic properties and is very important for technical podcata.
- These are not found in all places, due to which they are called rare meanings. Its production is the highest in China. The process of removing it is also very complex and expensive.
- This rare meaning minerals are used in many modern techniques and industry, including smartphones, laptops, TVs, electric vehicles, wind turbines, solar panels and batteries.
Why is the whole world dependent on China about rare meaning?
Currently, China is the world’s largest rare meaning animal producing country. According to the International Energy Agency, China holds 61 percent of the global mining rare economy, but controls 92 percent of global production. Also, for countries like India and America, business from China is also considered to be simple and cheaper than other places.
Why is Rare Earth Element?
This thing is more important for electric vehicles and traditional vehicles. In direct words, no vehicle can be ready without it. This thing is used in a system ranging from motor and steering to brakes, wipers and audio equipment. If there is no rare earth, the production of vehicles can be brake. Not only this, Rare Earth Elements are also used in smartphones, laptops, TVs, electric vehicles, wind turbines, solar panels and batteries.
Why is there a crisis for India?
The deal with the US has been done … Trump claims, but no information has been revealed about giving Rare Earth Elements to India. There was a meeting between Indian Ambassador Pradeep Kumar Rawat and China’s Deputy Foreign Minister Sun Waidong in China last Thursday. But no update has come from there either.
China has made changes to the export rules, after which its shipment has been stopped. Companies are also upset and are saying that production can stop if the shipment does not start early. Beijing has rejected not one but two applications for Indo-D’s. In such a situation, this crisis has become deeper. However, India is constantly trying to talk to China on this issue.
These things will become expensive
If such a shipment stops, then many electronics in India can be equally expensive. In the rare sense, prices can increase by 8 to 10 percent due to shipment. Experts estimate that an electric scooter priced ₹ 1.6 lakh can be expensive to ₹ 8-13,000. The problem is that ice cars also require rare meaning magnets for motor, driving power steering, windscreen wipers etc. In such a situation, its price can also increase.
Waiting for China’s reply
However, no information has been revealed from China so far. The world is waiting for the statement of Jinping on Rare Earth. If China really allows rare economy material, then it will be a big relief for the world and it is possible that India will also get a deal with India.