The Push for Rare Earth Independence

India's automotive and mobility ecosystem is racing to decouple from rare earth import dependence

- Ashish Bhatia.

Rare Earth Elements (REEs) have quietly become one of the most decisive inputs shaping the future of the global automotive and mobility industry. Once viewed as niche materials relevant primarily to defence and electronics, rare earths today sit at the heart of electric motors, sensors, actuators, power electronics and precision systems that define modern vehicles.

For India, the urgency around rare earth independence intensified sharply in 2024-25, when China tightened export controls on select rare earth elements and permanent magnet technologies. While framed as regulatory oversight, the move sent an unmistakable signal across global supply chains. Dependence on a single geography for critical materials is no longer sustainable.

What followed was not panic, but recalibration. The Government of India, industry bodies, auto component suppliers and OEMs began aligning around a shared objective of decoupling India's automotive growth from rare earth import vulnerability. This moment has become a structural inflexion point, not just for electric vehicles, but for the entire construction, commercial vehicle and industrial mobility ecosystem.

By imposing export licensing and end-user certification requirements, China effectively reminded the world that control over processing is more powerful than control over reserves. Indian auto suppliers and OEMs, many of whom source finished magnets or magnet-integrated subassemblies, found themselves navigating uncertainty around lead times, approvals and availability. Senior industry leaders described the situation on professional platforms as a “strategic stress test” for India's manufacturing ambitions.

India's Policy Response