India's EV Ambitions Hit by China's Rare Earth Export Curbs
| Topic | Details |
|---|---|
| Event | China imposes export curbs on rare earth elements (REEs) critical for EV manufacturing, impacting India's EV self-reliance. |
| Key Metals Affected | Neodymium, dysprosium, samarium, gadolinium, terbium, lutetium, scandium. |
| China's Role | Processes 85-95% of global REE supply. Controls mining, refining, and pricing since the 1990s. |
| India's Dependency | Imports over $7 billion worth of rare earths and EV batteries from China in 2024. |
| Domestic Reserves | India holds 6.9 million tonnes of REE reserves but lacks large-scale refining infrastructure. |
| Industry Impact | Production delays, rising costs, and halted R&D expected in India's EV industry. |
| Policy Moves | Economic Survey 2024-25 flagged REEs as a critical vulnerability. Govt released "Critical Minerals List" prioritising lithium and rare earths. KABIL formed to secure global mineral assets. |
| Domestic Capacity | IREL processed only 10,000 tonnes in 2023; China processed 200,000+ tonnes. |
| Recycling Efforts | Urban mining and e-waste recycling urged. Formalising e-waste sector could aid REE extraction and reduce imports. |
| Global Context | US, EU, and Japan also face dependence on China. Japan reduced dependence from 90% (2010) to 60% (2023) by diversifying, recycling, and stockpiling. |
| Proposed Solutions | Accelerate investment in mining, refining, and recycling. Promote PPP models, tech partnerships with Japan and Australia. Develop a strategic stockpile and build resilient supply chains. |