From Scarcity to Strategy: Reimagining Rare Earths in India's EV Growth Story
By :Dr. Satchidananda Tripathy, Assistant Professor, Paari School of Business- SRM University -AP( Amaravati)
The recent global panic triggered by China's rare-earth export restrictions has once again exposed the fragility of the electric vehicle (EV) industry's most critical raw material backbone. Neodymium, praseodymium, and dysprosium—key components in EV motor magnets—have become flashpoints in a larger geopolitical contest that could upend supply chains and stall clean energy ambitions worldwide.
For India, which has committed to aggressive EV adoption and aims to become a global automotive manufacturing hub, this crisis is both a warning and an opportunity.
The Supply Shock: A Global Red Flag
China currently controls over 90% of global rare-earth refining and over 85% of permanent magnet manufacturing. Its recent decision to limit exports of NdFeB magnets has caused global automakers to scramble. Ford has already paused production in Chicago; German OEMs are sounding alarms; and some EU plants may shut down as early as July due to material shortages.
While Western nations are racing to diversify rare-earth supply chains, it is becoming increasingly clear that new mining or refining capacity will take years—time the EV industry may not have.
The Strategic Shift: Demand-Side Innovation
Stockpiling can buffer short-term shocks, but long-term resilience will come from rethinking our dependency. Companies like Nissan, Renault, and U.S.-based Niron Magnetics are already exploring rare-earth-free motor technologies. Similarly, acoustic and mobility startups are building systems around alternative materials.
India must embrace this wave of 'engineered demand reduction'—by promoting R&D in magnet-free motors, incentivizing design optimization, and investing in academic–industry partnerships focused on material substitution.
If India can lead in developing rare-earth-efficient or rare-earth-free EV technology, it won't just solve a supply chain problem—it will create a strategic export opportunity.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
2 hours ago
- Business Standard
Zelenskyy warns rising oil prices may fund Russia's war against Ukraine
A sharp rise in global oil prices following Israeli strikes on Iran will benefit Russia and bolster its military capabilities in the war in Ukraine, Ukrainian President Volodymyr Zelenskyy said Friday in comments that were under embargo until Saturday afternoon. Speaking to journalists in Kyiv, Zelenskyy said the surge in oil prices threatens Ukraine's position on the battlefield, especially because Western allies have not enforced effective price caps on Russian oil exports. The strikes led to a sharp increase in the price of oil, which is negative for us, Zelenskyy said. The Russians are getting stronger due to greater income from oil exports. Global oil prices rose as much as 7 per cent after Israel and Iran exchanged attacks over the past 48 hours, raising concerns that further escalation in the region could disrupt oil exports from the Middle East. Zelenskyy to address concerns with the US Zelenskyy said he planned to raise the issue in an upcoming conversation with US President Donald Trump. In the near future, I will be in contact with the American side, I think with the president, and we will raise this issue, he said. Zelenskyy also expressed concern that US military aid could be diverted away from Ukraine toward Israel during renewed tensions in the Middle East. We would like aid to Ukraine not to decrease because of this, he said. Last time, this was a factor that slowed down aid to Ukraine. Ukraine's military needs have been sidelined by the United States in favour of supporting Israel, Zelenskyy said, citing a shipment of 20,000 interceptor missiles, designed to counter Iran-made Shahed drones, that had been intended for Ukraine but were redirected to Israel. And for us it was a blow, he said. When you face 300 to 400 drones a day, most are shot down or go off course, but some get through. We were counting on those missiles. An air defence system, Barak-8, promised to Ukraine by Israeli President Benjamin Netanyahu was sent to the US for repairs but never delivered to Ukraine, Zelenskyy said. The Ukrainian president conceded that momentum for the Coalition of the Willing, a group of 31 countries which have pledged to strengthen support for Ukraine against Russian aggression, has slowed because of US ambivalence over providing a backstop. This situation has shown that Europe has not yet decided for itself that it will be with Ukraine completely if America is not there, he said. Coalition of the Willing offer under consideration The offer of a foreign troop reassurance force pledged by the Coalition of the Willing was still on the table but they need a backstop, as they say, from America, Zelenskyy said. This means that suddenly, if something happens, America will be with them and with Ukraine. The Ukrainian president also said the presence of foreign contingents in Ukraine would act as a security guarantee and allow Kyiv to make territorial compromises, which is the first time he has articulated a link between the reassurance force and concessions Kyiv is willing to make in negotiations with Russia. It is simply that their presence gives us the opportunity to compromise, when we can say that today our state does not have the strength to take our territories within the borders of 1991, he said. But Europe and Ukraine are still waiting on strong signals from Trump. Without crushing US sanctions against Russia, I will tell you frankly, it will be very difficult for us, Zelenskyy said, adding that it would then fall on Europe to step up military aid to Ukraine. Body and prisoner returns follow Istanbul talks In other developments, Russia repatriated more bodies of fallen soldiers in line with an agreement reached during peace talks in Istanbul between Russian and Ukrainian delegations, Russian officials said Saturday, cited by Russian state media. The officials said Ukraine did not return any bodies to Russia on Saturday. Ukraine's Coordination Headquarters for the Treatment of Prisoners of War confirmed in a statement that Russia returned 1,200 bodies. The first round of the staggered exchanges took place Monday. The agreement to exchange prisoners of war and the bodies of fallen soldiers was the only tangible outcome of the talks in Istanbul on June 2. Russia says push continues Continuing a renewed battlefield push along eastern and northeastern parts of the more than 1,000-kilometre front line, the Russian Defence Ministry claimed Saturday that its troops captured another village in the Donetsk region, Zelenyi Kut. The Ukrainian military had no immediate comment on the Russian claim. Russia launched 58 drones and decoys at Ukraine overnight into Saturday, according to the Ukrainian air force, which said its air defences destroyed 23 drones while another 20 were jammed. Russia's defence ministry said it shot down 66 Ukrainian drones overnight. Attacks have continued despite discussions of a potential ceasefire in the war. During the June 2 talks in Istanbul, Russian and Ukrainian negotiators traded memorandums containing sharply divergent conditions that both sides see as nonstarters, making a quick deal unlikely.
&w=3840&q=100)
First Post
2 hours ago
- First Post
Zelenskyy warns oil price surge from Israel-Iran conflict could aid Russia's war chest
A sharp rise in global oil prices following Israeli strikes on Iran will benefit Russia and bolster its military capabilities in the war in Ukraine, Ukrainian President Volodymyr Zelenskyy said Friday in comments that were under embargo until Saturday afternoon. read more Zelensky also hoped the escalation between Israel and Iran would not result in a drop in military aid to Kyiv, according to remarks published on Saturday. "We would like to see aid to Ukraine not decrease because of this," he said. "Last time, this was a factor that slowed down aid to Ukraine." Israel unleashed large-scale attacks on Iran Friday, targeting nuclear and military facilities as well as high-ranking generals and atomic scientists, sparking international calls to restraint as fears of broader conflict grow. Image- AFP Ukrainian President Volodymyr Zelenskyy has warned that the recent spike in global oil prices, triggered by Israeli strikes on Iran, stands to benefit Russia and strengthen its military operations in Ukraine. Addressing the media in Kyiv, Zelenskyy said that the increase in oil prices poses a serious risk to Ukraine's defense capabilities, particularly as Western nations have failed to implement robust price caps on Russian oil exports. His statements were made on Friday but released under embargo until Saturday afternoon. STORY CONTINUES BELOW THIS AD 'The strikes led to a sharp increase in the price of oil, which is negative for us,' Zelenskyy said. 'The Russians are getting stronger due to greater income from oil exports.' Global oil prices rose as much as 7% after Israel and Iran exchanged attacks over the past 48 hours, raising concerns that further escalation in the region could disrupt oil exports from the Middle East. Zelenskyy said he planned to raise the issue in an upcoming conversation with US President Donald Trump and also expressed concern that US military aid could be diverted away from Ukraine toward Israel during renewed tensions in the West Asia. 'In the near future, I will be in contact with the American side, I think with the president, and we will raise this issue,' he said. 'We would like aid to Ukraine not to decrease because of this,' he said. 'Last time, this was a factor that slowed down aid to Ukraine.' Zelensky also hoped the escalation between Israel and Iran would not result in a drop in military aid to Kyiv, according to remarks published on Saturday. STORY CONTINUES BELOW THIS AD 'We would like to see aid to Ukraine not decrease because of this,' he said. 'Last time, this was a factor that slowed down aid to Ukraine.' Israel unleashed large-scale attacks on Iran Friday, targeting nuclear and military facilities as well as high-ranking generals and atomic scientists, sparking international calls to restraint as fears of broader conflict grow. Ukraine's military needs have been sidelined by the United States in favor of supporting Israel, Zelenskyy said, citing a shipment of 20,000 interceptor missiles, designed to counter Iran-made Shahed drones, that had been intended for Ukraine but were redirected to Israel. 'And for us it was a blow,' he said. 'When you face 300 to 400 drones a day, most are shot down or go off course, but some get through. We were counting on those missiles.' An air defense system, Barak-8, promised to Ukraine by Israeli President Benjamin Netanyahu was sent to the U.S. for repairs but never delivered to Ukraine, Zelenskyy said. STORY CONTINUES BELOW THIS AD The Ukrainian president conceded that momentum for the Coalition of the Willing, a group of 31 countries which have pledged to strengthen support for Ukraine against Russian aggression, has slowed because of U.S. ambivalence over providing a backstop. 'This situation has shown that Europe has not yet decided for itself that it will be with Ukraine completely if America is not there,' he said. The offer of a foreign troop 'reassurance force' pledged by the Coalition of the Willing was still on the table 'but they need a backstop, as they say, from America,' Zelenskyy said. 'This means that suddenly, if something happens, America will be with them and with Ukraine.' The Ukrainian president also said the presence of foreign contingents in Ukraine would act as a security guarantee and allow Kyiv to make territorial compromises, which is the first time he has articulated a link between the reassurance force and concessions Kyiv is willing to make in negotiations with Russia. STORY CONTINUES BELOW THIS AD 'It is simply that their presence gives us the opportunity to compromise, when we can say that today our state does not have the strength to take our territories within the borders of 1991,' he said. But Europe and Ukraine are still waiting on strong signals from Trump. Without crushing US sanctions against Russia, 'I will tell you frankly, it will be very difficult for us,' Zelenskyy said, adding that it would then fall on Europe to step up military aid to Ukraine. With inputs from agencies
&w=3840&q=100)
First Post
3 hours ago
- First Post
Iran warns of strikes on US, UK, French bases: Why that would be dangerous
Iran has warned it will target US, British, and French military bases in the region if they assist Israel in defending against Tehran's attacks. With thousands of Western troops stationed across the region and Iran's missile and drone capabilities expanding, this confrontation could trigger a far larger conflict read more A rescue personnel walks next to a damaged vehicle at an impact site following missile attack from Iran on Israel, in Ramat Gan, Israel, June 14, 2025. File Image/Reuters Iran has formally cautioned the United States, United Kingdom and France that if they interfere with its their forces stationed in the region will be considered legitimate targets. This announcement was transmitted through state-controlled Iranian media on Saturday and follows intensified hostilities between Israel and Iran following attacks linked to Iran's nuclear dispute with Israel. Western countries are now caught in a precarious position. US President Donald Trump has pledged support for Israel's defence, and American defence officials have acknowledged the role of US forces in countering airborne threats directed toward Israeli territory. STORY CONTINUES BELOW THIS AD France's President Emmanuel Macron echoed a similar stance, confirming on Friday that France would aid Israel if Iran escalated. Meanwhile, the British government has clarified that its forces have not been directly involved in any such support operations, with UK Prime Minister Keir Starmer highlighting the importance of restraint. The risk for Iran in executing its threat lies in the possibility of drawing Western militaries directly into the conflict, at a time when Israeli airstrikes have already imposed substantial pressure on Iranian-aligned infrastructure. Despite this, Tehran appears intent on deterring further foreign military support for Israel. Speaking at a UN Security Council meeting, US diplomat McCoy Pitt remarked, 'No government proxy or independent actor should target American citizens, American bases or other American infrastructure in the region. The consequences for Iran would be dire.' Where are Western forces located in the region? The United States maintains a widespread and enduring military presence across the region. According to the Council on Foreign Relations, this includes a network of permanent and temporary facilities in no fewer than 19 locations. There are eight fixed bases among these, located in Egypt, Jordan, Iraq, Kuwait, Saudi Arabia, Qatar, the United Arab Emirates and Bahrain. As of mid-2025, there are an estimated 40,000 to 50,000 American service personnel stationed across the region. These troops are distributed between major hubs and forward-deployed positions that serve logistical, intelligence, naval and aerial operational purposes. Among the most heavily manned countries are Qatar, Bahrain, Kuwait, the UAE and Saudi Arabia — nations that host key facilities vital to Washington's projection of power in the region. The United Kingdom also operates several installations across the Gulf and nearby territories. British forces are based at multiple locations, including Cyprus which is home to the Sovereign Base Areas of Akrotiri and Dhekelia, which are key staging grounds for RAF combat and support aircraft under Operation Shader. These bases also feature signal intelligence capabilities. STORY CONTINUES BELOW THIS AD Bahrain serves as the location of the UK Naval Support Facility, serving as the Royal Navy's primary Gulf support point, while Oman serves as the permanent joint support installation in Duqm aids maritime operations and training exercises, and it also is being developed as a key strategic anchor. British forces also utilise the Al Udeid air base in Qatar, a central node for RAF regional command and control while RAF personnel operate from the Al Minhad air base in the United Arab Emirates. UK forces and support staff are also present, albeit in smaller numbers, in Saudi Arabia and other Gulf states. France, for its part, has had a naval air station — formally named the French Military Settlement in the United Arab Emirates (IMFEAU) — in Abu Dhabi since 2009, supporting both aerial and maritime operations. What could happen if Iran struck Western assets? Iran's threat raises alarms across military and diplomatic circles. Even though US officials have insisted their role is defensive, Iranian leadership appears convinced that Western powers are facilitating Israeli operations. Likely Iranian targets include American military camps in Iraq, Gulf-based installations and possibly embassies and consulates. Tehran-backed armed groups remain active in Iraq, despite diminished activity from other Iranian proxy forces like Hamas and Hezbollah. STORY CONTINUES BELOW THIS AD Missiles launched from Iran are intercepted, as seen from the city of Ashkelon, Israel, June 13, 2025. Reuters Given the rising tension, the United States has already taken precautionary measures, including repositioning personnel in vulnerable areas. A serious flashpoint could emerge if an American national were to die in the ongoing conflict, whether in Israel or another hot zone. In such a case, Trump might face increased political pressure to respond militarily. The capabilities required to destroy deeply embedded Iranian nuclear facilities — such as those at Fordow — are currently only in the possession of the United States. While Trump campaigned on promises to avoid prolonged wars in the region, many in his political base support Israel's strategic objectives, including the goal of confronting Tehran directly. Escalation, however, carries far-reaching risks. If Iran's primary strikes fail to damage well-defended Israeli targets, Tehran may turn to more vulnerable points in the Gulf region. Past incidents serve as reminders: Iran was blamed for the 2019 drone and missile attacks on Saudi Aramco oil facilities and its Houthi allies successfully struck targets in the UAE in 2022. STORY CONTINUES BELOW THIS AD Despite recent diplomatic efforts to ease regional hostilities, the countries that host US and allied airbases — some of whom discreetly assisted Israel's air defense — could now find themselves under threat. Should these nations come under fire, they may seek assistance from American and allied air power, thereby expanding the theatre of war. What's next: Escalation, patience, or proxy retaliation? The future of this crisis hinges on Tehran's next steps. A continuation of long-range attacks appears likely, though immediate success against Israel's layered air defences is doubtful without backing from other powers, such as Russia or China — an outcome deemed improbable at this stage. Iran may instead resort to a more patient strategy, conserving its arsenal and waiting for a more opportune moment to strike again. This approach may involve periodic waves of drone and missile launches, each carefully timed to test or wear down Israeli and Western defences. For Washington, this creates a dilemma. Each new round of defence support to Israel — whether in the form of air defence systems or ammunition — entangles the US deeper in a conflict Trump has sought to contain. Not to forget, the risk of economic fallout, including surging oil prices grows with each retaliatory cycle. With inputs from agencies STORY CONTINUES BELOW THIS AD
