Ajai Chowdhry, co-founder of HCL and chairman of the National Quantum Mission, has warned that China’s dominance over rare earth elements poses a significant strategic risk to global manufacturing, including India’s ambitions in electric vehicles (EVs) and advanced technologies. China has gained control over 90% of the world’s rare earth minerals, which are critical for the production of various products, including EVs and their batteries. This control can be “weaponized” by China, giving them significant leverage over other countries.
Chowdhry noted that China acquired this control by buying mines over the past 15 years, allowing them to dictate the supply of rare earth materials. He emphasized that mining for rare earth is a “very dirty job” that creates health issues, making it a challenging task for countries like India to undertake. Furthermore, India has been late in addressing this issue, putting the country at a disadvantage.
To mitigate this risk, Chowdhry suggested that India should focus on extracting critical minerals from its growing e-waste. He estimated that 30-40% of domestic demand for rare earth materials could be met through this “non-mined” route. The Indian government has prepared a comprehensive rare-earth plan for recycling electronic scrap, which is being implemented by NITI Aayog. However, Chowdhry pointed out that this process will take five to seven years to yield results.
As a faster alternative, Chowdhry proposed that India should convert its e-waste into rare earth materials. This approach could yield significant quantities of the required materials, reducing the country’s dependence on Chinese supplies. By taking this step, India can reduce its strategic risk and promote its ambitions in EVs and advanced technologies. Overall, Chowdhry’s warning highlights the need for India to address its vulnerability to Chinese dominance in rare earth elements and explore alternative sources to ensure its economic and technological security.