(MENAFN) India is creating a reserve of rare earth elements to secure their medium-term availability, according to a report by a media outlet on Monday.

This initiative is a direct reaction to the escalating trade friction between China and the United States, particularly following China's recent limitations on exporting rare earth magnets.

As per the outlet, the strategy involves establishing a two-month supply buffer of critical rare earth resources, with significant involvement from private sector firms.

A senior government source noted that this move is designed to protect India's access to these vital elements, which serve key roles in sectors such as "defense," "electronics," and "batteries in electric vehicles."

“The initial focus is on rare earth elements,” a government representative stated in the outlet’s article. Over time, the reserve is expected to include other significant minerals that are important for India’s "energy transition" and its "manufacturing industries," the publication reported.

At present, China commands a dominant position in the international market, producing nearly 60% of the globe's supply of rare earth magnets. In the midst of ongoing trade disputes with the U.S., Beijing has introduced new limitations on magnet exports.

India possesses approximately 7.23 million tonnes of rare earth elements, as disclosed by Minister of State for Science and Technology Jitendra Singh during a parliamentary session in July.

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