India’s electric vehicle (EV) sector is facing significant challenges due to China’s tightened export controls on rare earth elements (REEs). These materials are crucial for manufacturing components like motors and batteries in EVs. China, which processes over 90% of the world’s rare earths, has recently imposed stringent export restrictions, citing national security concerns. This move has disrupted global supply chains and raised alarms in countries heavily dependent on these materials, including India.
In response to these challenges, India is actively seeking alternative sources and developing domestic capabilities. The Indian government has initiated plans to enhance domestic production of rare earth magnets and reduce reliance on imports. However, building a self-sufficient supply chain will require significant investment and time.
The situation underscores the strategic importance of rare earth elements in the global economy and the need for countries to secure their supply chains. As India continues to push forward with its EV ambitions, navigating the complexities of global trade and resource availability will be crucial for its success.
