Crisis on India Ev Industry: India’s electric vehicle (EV) industry has faced a major crisis due to China tightening control over the export of rare economy (rees). These rare metals are essential in many high-tech devices including EV motor and battery. India’s EV industry is significantly dependent on China for these elements, as China controls about 70% of the world’s rare meaning production and supply chain.
What are rare meanings elements?
• Rare Earth Elements (REES) are a total of 17 chemically similar metals, including neodimiums, presentations, dysproosium and turbium.
• They are used in electric motors, batteries, smartphones, wind turbines and military equipment.
• Despite the name, they are abundant in the surface of the Earth, but it is difficult and expensive to economically mining and processing them.
Role of China
• China dominates 60-80% rare economy and processing in the world.
• China has recently reduced export quota and implemented strict rules, which is disrupting supply in India and there is a danger of increasing costs.
India’s position
• India is both consumer and potential producer of these elements, but still depends on heavy imports from China.
• The capacity of mining and processing in the country is in the initial stage.
• India is now trying to increase imports from countries like Australia, America and increase investment on domestic mining and processing.
Potential impact
• The supply of supply can increase production costs and slow the speed of EV adoption, which can affect India’s 30% EV target by 2030.
conclusion
China’s export control has created a serious challenge for India’s EV industry. To deal with this, India needs to increase diversity and domestic production in the supply chain.
