Mineral Imperative

India’s electric vehicle (EV) revolution faces a mineral bottleneck that could prove far more consequential than any production hiccup or policy delay. While the country has made ambitious strides in transitioning to green mobility, it has overlooked a critical component embedded deep within EV systems: rare earth elements.

These minerals ~ such as neodymium, praseo – dymium, lithium, and dysprosium ~ are the lifeblood of modern electric motors and batteries. And currently, India sources most of them from a single, politically complex supplier: China. The risks of such dependence were laid bare when China tightened its rare earth export policies last year, citing national security. This wasn’t just a diplomatic signal ~ it was a sharp economic lever. China now controls more than 70 per cent of rare earth production and nearly 90 per cent of global refining. With a single decision, Beijing reminded the world who sets the rules in the clean-tech economy.

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Indian manufacturers, in response, rushed to build magnet stockpiles, but those are only temporary stopgaps. The hard truth is this: no matter how advanced the vehicle, it won’t run without the minerals that make it move. Other countries, notably the US, have experimented with workarounds ~ rerouting materials through third-party nations to skirt export controls. But such tactics are only partially effective and ultimately unsustainable. China quickly caught on, tightening regulations and increasing surveillance to block indirect trans-shipments. The US had to negotiate its way out, conceding technological and trade benefits in the process. These events underscore a larger pattern: where strategic minerals are concerned, rerouting is not resilience. India must act now. First, it must secure supply diversification through friendly countries with stable diplomatic ties ~ short-term relief that buys time.

Secondly, it must accelerate investment in overseas mining assets. Africa, with its untapped reserves of lithium, co – balt, and copper, offers a compelling opportunity; so does Australia, a country already aligned with India in multiple strategic forums. But beyond access, the real advantage lies in partnership ~ for knowledge, refining infrastructure, and technology transfer. At home, India needs to strengthen its mineral value chain from scratch. This includes incentivising domestic mining, creating robust refining capacities, and heavily funding R&D to identify viable substitutes or alternatives to rare earths. India also has reserves of neodymium, which, with proper investment, could yield meaningful supply.

This domestic ecosystem must be nurtured not as an emergency measure, but as a long-term industrial strategy. Lastly, a more nuanced approach to Chinese FDI ~ where technology transfer is mandated ~ could provide India with know-how while maintaining economic caution. Such a policy is not concessionary, but calculated. To lead in EVs, India must first learn to lead in minerals. The future of green mobility won’t be decided on assembly lines alone ~ but in mines, labs, and minis – tries making bold, forward-looking decisions today.