New Delhi, Dec. 1 -- Earlier this year, a Pune firm quietly solved a problem that has vexed policymakers for decades. Ashvini Rare Earth commissioned India's first plant to produce neodymium-praseodymium (Nd-Pr) metals, essential for the permanent magnets that drive electric vehicle (EV) motors, wind turbines and high-end electronics.

On paper, this should have been a turning point. With a domestic source finally emerging, why didn't India's leading EV makers-Ather and Bajaj Auto included-switch from Chinese magnets to homegrown supply? As The Ken reported, they mostly haven't. India may produce the raw rare-earth metal, but it still depends heavily on China for these magnets and the technology that makes them.

This gap between metals a...