Kinetic Green CEO Urges Government Action on Rare Earth Materials for EV Sector

Sulajja Firodia Motwani, the founder and CEO of Kinetic Green, has expressed the urgent need for government intervention in the ongoing rare-earth materials dilemma, as the Indian electric vehicle (EV) industry may soon face significant challenges despite managing well in the short run. She pointed out the complexities involved in altering product designs and supply chains, suggesting that it might take the automobile sector at least two to three years to achieve localization or adopt alternative technologies.

During a recent event showcasing the company's luxury electric Golf & Lifestyle Cart in collaboration with Tonino Lamborghini, Motwani emphasized the critical nature of resolving these issues swiftly. She recalled previous instances, such as the semiconductor shortages during the COVID pandemic, where the government effectively took action to resolve supply chain disruptions. She remains hopeful that a similar proactive approach will emerge to address the rare-earth situation, especially as Kinetic Green is exploring alternative technologies in the interim to mitigate the disruptions caused by geopolitical tensions surrounding these materials.

The Indian government has allocated substantial funds to stimulate the production of rare earth magnets domestically. China's new export controls on critical materials have catalyzed a global supply shortage, impacting countries like India that heavily rely on these resources, which are integral to various sectors, from automotive to clean energy. In response, India is maintaining dialogue with China to ensure a stable supply of rare earth metals, which are essential for the sector's growth.

With a broader context, the Indian Union Cabinet had previously approved the National Critical Mineral Mission, earmarking significant investments to enhance domestic mining and exploration efforts for critical minerals. Kinetic Green's Motwani has further urged the government to sustain its support for electric vehicle adoption, noting that achieving a higher penetration rate of EVs will create critical mass for supply chains, and ecosystem development. She acknowledged ongoing resistance from traditional internal combustion engine manufacturers aiming to uphold the existing status quo but expressed optimism in government initiatives that encourage the adoption of electric vehicles, emphasizing the need for continued support to maintain momentum in the EV sector.