The Prime Minister's Office convened a high stakes meeting on Friday to address the escalating crisis surrounding rare earth magnets, critical for various manufacturing activities in sectors across automotive, electronics, wearables and more.Among key stakeholders, Mines Secretary Kantha Rao was also part of this meeting, people familiar with the matter told NDTV Profit.The move follows the announcement made earlier this month by the Ministry of Heavy Industries that proposed a Rs 1,345-crore scheme to boost domestic production of rare earth magnets, such as neodymium-iron-boron, vital for high-performance motors in EVs and renewable energy technologies and more.Heavy Industries Minister HD Kumaraswamy announced the initiative, emphasising that the draft is under inter-ministerial consultation, with cabinet approval expected soon.As countries like India explore their manufacturing prowess and ramp up their production capacities in critical minerals dependent sectors, geopolitical tensions have created turbulence and China has retaliated with export cuts of critical minerals, of which it is a dominant player. China currently dominates around 60-70% of global rare earth production and over 85% of processing capacity.The move comes as major economies, including India, look for ways to revive supply chains with indigenous capacity of critical minerals and rare earth elements.In the past, China has used its rare earth dominance as a trade tool, tightening export controls on key minerals like gallium, germanium and graphite, citing national security concerns — moves widely seen as retaliation to western curbs on China's access to advanced chip technologies.Rare earth magnets, such as neodymium-iron-boron magnets, are essential for high-performance motors used in electric vehicles and renewable energy technologies. India has some reserves of rare earth minerals but lacks large-scale processing and magnet-making capabilities, keeping it dependent on imports from China and a handful of other suppliers.India Plans Rs 1,345-Crore Scheme To Boost Rare-Earth-Magnet Production Amid China's Export Restrictions. Read more on Latest Business News by NDTV Profit.