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Crisis on India Ev Industry What are Rare Earth Elements China Export Control Creates Panic in India Ev Industry | Crisis on India Ev Industry: Crisis on India’s EV industry: What are Rare Earth Elements? India’s EV industry stirred due to China’s export control.

by Abhishek Mehra
June 2, 2025

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.

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