Local rare-earth production to take time, govt support needed for EV sector: Kinetic Green CEO
New Delhi [India]July 20 (Memorial): Sulajja Firodia Motwani, the founder and CEO of Kinetic Green, said that the Indian electric vehicle (home) sector has managed to cope in the short term and said that “it is not easy to change your product design and supply chain”.
Kinetic Green’s founder emphasized that players in the automobile industry to localize the supply chain or adopt alternative technologies may take at least two to three years.
“If it is not easy to change your product design and supply chain, it will affect the sector if it is not easy to solve. The house sector is struggling to manage the short term in a short term. But I think it should be a state-state solution very soon in the medium term. Because, trying to localize the supply chain or change the technology will take two to three years. efficiency.
“We have encountered a similar situation on semiconductors in Covid, if you remember, the government has followed and solved it. I hope something will emerge.”
He added that the company is trying to develop alternative technologies to reduce the negative impact of such restrictions caused by global geopolitical movements until the problem is resolved.
“But in the meantime, we find alternatives for the work to continue, but it is not ideal to do so, and maybe not everyone can do it. Thus (restrictions on China’s rare soil material) will affect the sector.”
Central Government left La1.345 Crore to promote rare soil magnet production in India.
For the context, in early April, China announced the decision to implement export controls in some rare articles about the world and forced a worldwide supply shortage, including India.
In the meantime, India is in contact with the Chinese side, while the XI administration is looking for predictability in the supply of rare land metals under the export control regime.
China’s overwhelming control of global rare soil processing – Commanding more than 90 percent of the world magnet production capacity – created significant security vulnerabilities for industries worldwide. These materials are critical in multiple sectors, including cars, household appliances and clean energy systems. Regardless of China, critical minerals have only a few alternative suppliers.
In January 2025, the Union’s Cabinet approved the launch of the national critical mining mission (NCMM) with an expenditure. La16,300 crore and an expected investment La18,000 Crore by public sector commitments.
Recently, the Minister of Union Coal and Madens, Genhan Redy, said that the central government has encouraged private companies to discover the critical minerals abroad and bring them back to the country to serve the needs of the indigenous industry.
Speaking about the incentives to the sector, Motwani said, “The government has to continue to support the adoption of homes. Once we arrive, we will have a critical mass in the supply chain, scale and ecosystem after coming to 25-8 percent house.
“We started well, but we’re far from finishing. The government should continue to support the adoption of electric vehicles,” he added.
He also noted the resistance of the traditional internal combustion engine (ICE) players, interested in protecting the status quo. “It is encouraging that the government continues to focus on the focus of the government.
