Why India’s Electric Vehicle Industry Relies on China for Rare Earths

Remember back in 2016, when the Indian government said,

“By 2030, every vehicle in India will be electric!”

And we all looked at our Activas, Altos, and Ambassadors and went,

“Wah! Kya vision hai!”

Fast forward to 2025, and the dream has gone from full EV takeover to let's settle for 30% — with a sheepish grin and a shrug.

The new, more “realistic” target?

30% Electric Four-Wheelers

80% Electric Two-Wheelers

…and 100% confusion among the public

So, what exactly happened to this Tesla-fied utopia we were promised?

Spoiler: It’s not just about missing charging stations. It’s about traffic, China, pollution, and some serious economic jugglery.

The Backpedal Nobody Talked About

After that flashy 2016 declaration, no government spokesperson ever brought up the 100% EV dream again. It was like that New Year’s resolution you told everyone about... and never mentioned again.

Meanwhile:

Indian cities still rank as the who’s who of global air pollution

We still import 90% of our crude oil from Russia, Iraq, Saudi Arabia, and Uncle Sam

So logically, EVs should’ve been our salvation, right?

Except… they come with their own baggage. And that baggage says: “Made in China.”

The Electric Elephant: China Runs the EV Show

Here’s the unspoken truth: EVs might help us ditch oil...

But they could make us permanently hooked on China, not for batteries, but for something even more rare (literally):

Rare Earth Elements. Or as we call them in India: “Imported headache.”

What Are Rare Earths & Why Are We Stuck?

Modern EVs use Permanent Magnet Synchronous Motors (PMSM), which need a juicy cocktail of rare earths like:

* Neodymium

* Dysprosium

* Praseodymium

* Terbium

And other periodic-table VIPs

Where are they refined?

* China mines 60% of global REEs

* Refines over 85% of them

* Manufactures 92% of permanent magnets

Didn't get it? Translation?

Even if we dig them out of Indian soil, we’ll probably have to ship them to China just to make them usable. Genius, right?

Why Not Build Our Own Rare Earth Refineries?

Simple: Because it’s dirty, toxic, radioactive, and nightmare fuel for environmentalists.

Examples?

* California’s Mountain Pass leaked 7.5 million litres of radioactive waste

* Malaysia’s rare earth refinery became a national headache

* Baotou, China? A glowing (not metaphorically) lake of 10 million tons of toxic sludge per year

So yes, you can refine them... if you’re okay with a side of uranium and thorium in your groundwater.

And Guess What? We’re Already Feeling the Burn

With rising global tensions, China started choking the supply of REEs and motors.

In response:

* 90% of our EV motor components are at the mercy of Chinese ports

* Big names like Tata, Mahindra, and even foreign EV startups are sweating more than their customers in Delhi summers

So What Now? Are We Stuck Between Smog and a Chinese Magnet?

Not entirely. India has some options left — if we stop acting like it’s all or nothing.

Option 1: Build Refineries (But Do It Right)

Yes, we have rare earth reserves.

No, we don’t want glowing cows in Punjab.

So the fix?

* Small-scale, monitored refineries

* Partner with nations like Australia or Vietnam

And most importantly: Don’t cut corners like it’s a B-grade government contract

Option 2: Ditch Rare Earths, Switch Motors

Electrically Excited Synchronous Motors (EESM) — try saying that five times fast — don’t need rare earths.

* BMW and Mercedes already use them

* They’re slightly less efficient

* Slightly bigger

* Slightly more expensive

But hey, at least they don’t come with a “Made in China” stamp and a geopolitical panic attack.

But Wait... Aren’t ICE Vehicles the Real Villain?

Well, yes. But also… let’s not pretend EVs are riding in on a unicorn to save us.

Let’s Compare:

China

* Switched to nuclear & solar

* Shut down polluting factories

* EV + Clean energy = Cleaner cities

India

* Still burning coal like it’s 1990

* Can’t stop stubble burning

* Has factories running on vibes and zero regulations

End result?

Chinese cities are out of the top 10 most polluted list.

Indian cities are like, “Hold my mask.”

So, Should India Tap the Brakes on EVs?

Nope. But maybe… stop flooring the accelerator while blindfolded.

We can’t afford to go all-in on EVs with zero local supply chain, zero power reform, and full China dependency.

What should we do?

* Push EVs, but don’t murder ICE overnight

* Invest smartly in refining and motor tech

* Support alt-tech (like EESM)

* And please… fix our coal dependency. EVs running on coal are just smoke in a fancier package