The evolving dynamics of India’s electric mobility ecosystem, setting the stage for a deeper conversation on supply chain resilience. In a recent interaction with Sanjana Negi, Bhaktha Keshavachar, CEO & Co-founder of Chara Technologies discussed Building on this context, Bhaktha Keshavachar, CEO & Co-founder of Chara Technologies highlights a critical gap in India’s EV ambitions—its limited presence in the rare-earth value chain beyond mining.
Keshavachar explains that focusing solely on rare-earth extraction offers minimal strategic advantage, as the real value lies in refining, separation, and magnet manufacturing. Without these capabilities, India risks remaining dependent on global suppliers for critical EV components, exposing the industry to price volatility, supply disruptions, and geopolitical risks. He emphasizes that magnets, a core element in EV motors, directly influence performance, cost, and scalability.
The conversation also underscores the urgent need for ecosystem-wide development—from advanced materials processing to component manufacturing and deep-tech talent. By investing in end-to-end capabilities and fostering collaboration between industry, policy, and research, India can transition from being a passive consumer to an active creator in the global EV landscape.
Why is it critical for India to invest not just in rare-earth mining but also in refining, separation, and magnet manufacturing capabilities?
Investing only in mining rare earths is like extracting crude oil without having refineries or petrochemical infrastructure. It captures only a fraction of the value and leaves the country dependent on external ecosystems. Rare-earth value chains are highly layered, with mining just being the starting point. The real strategic and economic leverage lies in refining, separation, and ultimately magnet manufacturing. These downstream processes are technologically complex and capital-intensive, which is precisely why a few countries dominate them today. If India limits itself to mining, it will still need to send raw material abroad for processing and then import finished magnets at a premium, effectively locking itself into the same dependency loop it is trying to escape.
For sectors like EVs, where motors are core to performance and cost, this becomes a structural vulnerability. Control over magnets directly impacts supply security, pricing stability, and innovation flexibility. Building end-to-end capabilities ensures not just self-reliance but also the ability to participate competitively in global supply chains. It also creates a platform for adjacent innovation, whether in materials science or alternative motor technologies, making India not just a consumer, but a creator in the electric mobility ecosystem.
What are the current gaps in India’s rare-earth ecosystem, and how can they be addressed to improve supply chain resilience?
India’s rare-earth ecosystem today is fragmented, with clear gaps across processing, manufacturing, and ecosystem integration. While there is some capability in mining, the country lacks meaningful scale in refining and separation technologies, which are essential to convert raw ore into usable rare-earth oxides. Beyond that, magnet manufacturing is arguably the most critical link for EV applications and is almost absent at scale. This creates a situation where even if raw materials are available domestically, the value addition happens elsewhere.
Another significant gap is the absence of a strong component ecosystem. Motors and controllers rely on a broader supply chain, while semiconductors, capacitors, and power electronics, many of which are still imported. This weakens overall resilience. There is also a talent gap in deep hardware engineering, especially in areas like electromagnetics and materials science, which are crucial for building alternatives.
Addressing these gaps requires a multi-pronged approach. Policy support must go beyond incentives for assembly and focus on deep manufacturing and component-level capabilities. Industry collaboration is equally important, with startups, academia, and large manufacturers needing to work together. Finally, long-term “patient capital” is essential, as these are not short-cycle businesses. Building resilience here is less about one breakthrough and more about systematically strengthening every layer of the value chain.
How does global supply concentration of rare-earth elements impact the scalability and cost stability of the EV industry?
Global supply concentration of rare-earth elements introduces a fundamental asymmetry into the EV industry. When a single geography controls a dominant share of mining, refining, and magnet production, it effectively becomes a price-setter and gatekeeper for critical components. This directly impacts both scalability and cost predictability for EV manufacturers.
From a scalability standpoint, rapid EV adoption requires a parallel scale-up in motor production, and therefore magnet supply. If supply chains are concentrated, any disruption, whether policy-driven or logistical, can create bottlenecks that slow down production timelines globally. From a cost perspective, the volatility is even more pronounced. Prices of rare-earth materials can fluctuate sharply based on geopolitical developments, export controls, or strategic decisions by dominant players.
For OEMs, this creates a planning challenge. You are building long-term products with multi-year roadmaps, but your key input costs are subject to external uncertainties. This unpredictability can either erode margins or get passed on to consumers, affecting adoption. In essence, supply concentration turns what should be an engineering and manufacturing challenge into a geopolitical risk. That is why many companies are now actively exploring alternatives, not just for cost savings, but for long-term business stability.
What are the biggest geopolitical and economic risks associated with rare-earth dependence for EV manufacturers?
Rare-earth dependence introduces risks that go beyond traditional supply chain challenges, considering they are deeply geopolitical in nature. When a critical input is controlled by a limited number of countries, it can be used as a strategic lever. Export restrictions, tariffs, or even informal policy shifts can disrupt supply overnight. We have already seen instances where geopolitical tensions have translated into material supply constraints, and EV manufacturers are particularly exposed because motors are central to vehicle performance.
In EV motors, rare earth magnets alone can account for around 40% of total motor cost, creating structural supply-chain exposure. Economically, this dependence creates volatility in input costs, which is difficult to hedge against. Unlike commodities with diversified suppliers, rare-earth markets are relatively opaque and concentrated. This makes long-term cost planning uncertain, especially for companies operating in price-sensitive markets like India.
There is also a strategic risk of technological lock-in. If your motor architecture is dependent on specific materials, your ability to innovate or pivot becomes constrained. In contrast, moving towards alternative technologies, such as rare-earth-free motors, provides both flexibility and insulation from these risks.
Ultimately, the biggest risk is not just disruption, but lack of control. For an industry that is expected to scale massively over the next decade, that lack of control can become a serious bottleneck unless proactively addressed.
In what ways can disruptions in rare-earth supply chains affect EV adoption timelines in emerging markets like India?
In emerging markets like India, EV adoption is highly sensitive to cost, availability, and reliability. Disruptions in rare-earth supply chains can impact all three simultaneously. If magnet supply becomes constrained or expensive, motor costs increase, which directly affects vehicle pricing. Given that segments like two-wheelers and three-wheelers operate on very tight cost margins, even small increases can slow down adoption significantly.
Beyond cost, supply disruptions can lead to production delays. OEMs may face challenges in sourcing components, leading to longer lead times and reduced vehicle availability in the market. This affects consumer confidence, especially in a category that is still in the adoption phase.
There is also an indirect impact on innovation cycles. If manufacturers are constantly managing supply risks, their focus shifts from innovation to risk mitigation. This slows down the pace at which better, more efficient products reach the market.
In contrast, developing alternative technologies that are less dependent on such supply chains can act as a buffer. It ensures continuity and predictability, which are critical for scaling adoption. In that sense, supply chain resilience is not just an operational concern, it is directly linked to how quickly EVs can penetrate markets like India.
How are rare-earth-free motor technologies evolving as viable alternatives for EVs?
Rare-earth-free motor technologies, particularly synchronous reluctance and externally excited synchronous motors, are moving from theoretical concepts to practical, deployable solutions. Historically, these technologies existed but were limited by challenges in control, efficiency, and performance consistency. However, advancements in power electronics, control algorithms, and materials engineering have significantly improved their viability.
Today, it is possible to design rare-earth-free motors that match the torque, power, and peak efficiency of conventional permanent magnet motors in many applications. More importantly, they offer advantages at a system level. For instance, better efficiency across the duty cycle can translate into improved real-world range for EVs, which is often more relevant than peak efficiency numbers.
Another key shift is in market perception. Earlier, the question was “why move away from proven technologies?” Today, with increasing awareness of supply chain risks, the question is shifting to “why stay dependent?” This has accelerated interest from OEMs.
While these technologies may not replace all motor types, they are increasingly finding strong product-market fit in specific segments, such as two-wheelers, three-wheelers, and certain industrial applications. Over time, they are likely to become an integral part of a diversified motor ecosystem.
What are the trade-offs in performance, efficiency, and cost between rare-earth-based motors and alternative motor architectures?
Every motor architecture comes with its own set of trade-offs, and rare-earth-free motors are no exception. Permanent magnet motors have an inherent advantage in power density due to the strength of the magnets, which allows for compact and lightweight designs. In comparison, rare-earth-free motors typically require more copper and steel, making them slightly heavier and larger.
However, this is only one part of the picture. In real-world applications, efficiency across the entire operating range, what we call duty cycle efficiency, is often more important than peak efficiency. Rare-earth-free motors can offer more stable efficiency across speeds, which can translate into better range for EVs without increasing battery size. At a system level, this can offset the weight disadvantage.
From a cost perspective, eliminating rare-earth materials removes exposure to volatile and geopolitically sensitive inputs. While there may be higher material usage in other areas, the overall cost structure can become more stable and predictable over time.
Chara’s rare-earth-free synchronous reluctance motor architecture eliminates the need for permanent magnets. Instead of relying on magnetic attraction from rare-earth materials, torque is generated through rotor geometry, magnetic saliency, and advanced control algorithms. Our motors are also 10–15% more cost-efficient while delivering on-par performance with a permanent magnet motor.
The key point is that the trade-offs are shifting. With advancements in design and control, alternative architectures are reaching a point where they are not just substitutes, but competitive choices, especially when evaluated at the system and lifecycle level rather than in isolation.
What policy, industry, and R&D collaborations are needed to build a resilient and future-ready EV manufacturing ecosystem in India?
Building a resilient EV ecosystem in India requires coordinated action across policy, industry, and research. On the policy side, incentives need to move beyond end-product assembly and focus on deep manufacturing, components, materials, and subsystems. Schemes that support electronics manufacturing, such as those targeting controllers and power electronics, are a step in the right direction, but a similar focus is needed for motors and critical materials. Incentive model for indigenous technologies could also accelerate adoption by creating demand-side pull.
From an industry perspective, collaboration is key. Startups, OEMs, and large manufacturers need to work together rather than operate in silos. Startups bring innovation, while established players bring scale and market access. Building strong supplier networks, especially for components, is equally important.
R&D collaboration is perhaps the most critical piece. Universities, research institutions, and companies must work together on areas like materials science, electromagnetics, and advanced manufacturing. These are long-gestation efforts that require sustained investment.
Finally, access to patient capital is essential. Deep-tech manufacturing cannot be built on short-term expectations. If these elements come together, India has a real opportunity to not just participate in, but shape the future of global EV manufacturing.
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