Dr. Pragathi Darapaneni on Rare Earths, AI Hardware, and the Future of Energy Storage
Author(s): Scott Douglas Jacobsen
Publication (Outlet/Website): The Good Men Project
Publication Date (yyyy/mm/dd): 2025/10/28
Pragathi Darapaneni, Ph.D., is a seasoned materials scientist and Senior Product Development Engineer at Schaeffler Asia with over 14 years of experience across national labs, academia, and leading automotive R&D. A specialist in lithium-ion and lithium-metal battery innovation, she has collaborated with global automakers including Honda, Ford, GM, and Toyota to advance next-generation energy storage for electric vehicles. Holder of four U.S. patents and numerous publications, she bridges cutting-edge research with industrial application. Beyond her technical work, Pragathi mentors women in STEM and contributes expert insights on clean energy, advanced materials, and the future of mobility.
In this interview with Scott Douglas Jacobsen, she highlights rare earths and critical metals—such as neodymium, cobalt, nickel, gallium, and lithium—as central to AI hardware, EVs, and semiconductors, while warning of concentrated supply chains dominated by China. Darapaneni emphasizes substitution research, recycling innovations, and “urban mining” to reduce dependency. She stresses that human talent, cross-disciplinary training, and advanced manufacturing capacity are as crucial as materials. Looking ahead, she foresees solid-state batteries, quantum materials, and AI-driven discovery reshaping global competitiveness.
Scott Douglas Jacobsen: Which rare earth minerals and critical metals are vital for advancing AI hardware?
Dr. Pragathi Darapaneni: AI hardware relies heavily on rare earth elements and critical metals, which enable fast andefficient computing and energy delivery. Neodymium and dysprosium are essential for high-strength permanent magnets used in advanced cooling and power systems. Cobalt and nickel stabilize high-energy-density batteries that power AI data centers and robotics. Gallium and indium are critical for semiconductors and photonics, while tantalum supports the manufacture of capacitors. These elements collectively ensure that processors, servers, and support infrastructure can operate at scale.
Jacobsen: How might supply chain vulnerabilities, such as those related to lithium, cobalt, or neodymium, impact global competitiveness?
Darapaneni: Supply chains for critical minerals remain concentrated in a few regions, particularly China. Disruptions—whether political, economic, or logistical—can slow AI hardware production, drive up costs, and limit access to next-gen chips, servers, and batteries. This creates a competitive imbalance, with countries or companies locked out of innovation cycles. Nations investing in domestic supply, allied trade partnerships, and recycling will maintain technological leadership.
Jacobsen: What potential substitutes or recycling strategies could mitigate risks based on dependence?
Darapaneni: Substitution efforts include developing sodium-ion and lithium-iron-phosphate (LFP) batteries that avoid cobalt and nickel, and researching rare-earth-free magnets. On the recycling side, advanced hydrometallurgy and electrochemical leaching are allowing recovery of neodymium, cobalt, and lithium from spent batteries and electronics. “Urban mining” is becoming a credible pathway to reduce dependency on newly mined materials.
Jacobsen: How do geopolitical tensions shape access to rare earths?
Darapaneni: Geopolitical tensions, especially U.S.-China relations, directly shape the availability and pricing of critical minerals. With China controlling ~85% of global rare earth processing, even minor trade restrictions have a ripple effect globally. This makes mineral access not just a supply chain issue but a national security concern, influencing defence, clean energy, and AI competitiveness.
Jacobsen: What role does human talent play in bridging research breakthroughs?
Darapaneni: Since materials alone don’t drive progress, human talent is the catalyst. Skilled researchers, engineers, and technologists are needed to develop new chemistries, optimize processes, and integrate materials into scalable systems. Cross-disciplinary expertise spanning materials science, AI systems, and manufacturing is essential to translate lab discoveries into real-world hardware.
Jacobsen: Where are the most significant bottlenecks in developing skilled workforces for AI hardware?
Darapaneni: The main bottlenecks are in advanced manufacturing and applied R&D training. Many graduates are well-trained theoretically but lack hands-on experience with pilot-scale production, semiconductor fabrication, or battery prototyping. Additionally, there are gaps in policy literacy and commercialization skills—understanding how to scale technologies within regulatory and supply chain constraints.
Jacobsen: How do you see the interplay of materials innovation and human expertise?
Darapaneni: Materials innovation sets the stage, but human expertise orchestrates the performance. For example, developing cobalt-free cathodes or rare-earth-free magnets requires not only scientific breakthroughs but also engineers who can adapt manufacturing lines and policymakers who can incentivize adoption. The interplay ensures that innovations are not just possible but practical.
Jacobsen: What emerging technologies or workforce shifts would dramatically reshape the AI electronics landscape?
Darapaneni: Emerging technologies like solid-state batteries, graphene-based conductors, and quantum materials could redefine hardware capabilities. On the workforce side, stronger global collaboration networks and training programs in data-centric materials science will be transformative. The convergence of AI with materials discovery—where AI itself accelerates R&D—will also reshape the landscape dramatically within the next decade.
Jacobsen: To conclude, what about global automakers—mainly those that rely heavily on electronics and complex circuitry for next-generation cars?
Darapaneni: The global supply chain for these inputs is already under pressure from tariffs and export restrictions. For example, China has introduced new export controls on several rare earths and on battery-related materials in recent years, which affect downstream industries.
In response, automakers—particularly in the European Union—are trying to reduce dependence on politically concentrated supplies. The EU’s Critical Raw Materials Act pushes domestic mining, refining, and recycling, and it even sets recyclability and recycled-content requirements for permanent magnets used in EVs and other products. Efforts also include developing “rare-earth-free” or reduced-dysprosium magnets and broader substitution where feasible.
There is substantial research and investment across EVs, permanent magnets, semiconductors, and power electronics to diversify materials and improve supply security—especially for components that currently rely on rare earth elements.
Jacobsen: Which countries are leading in terms of having sufficient quantities of these materials to continue operating at high capacity for their automotive industries into the foreseeable future?
Darapaneni: For rare earths, China is the top producer and the dominant processor; other notable producers include the United States, Myanmar, and Australia. For battery inputs: Australia leads lithium production (with significant reserves in Chile); the Democratic Republic of the Congo produces the vast majority of cobalt; Indonesia is the largest nickel producer; and China leads in natural graphite production and processing. China also dominates trade and mid-stream processing for many battery minerals.
Jacobsen: Given that, will China and the United States meet minimum needs for EVs and electronics over the next five to ten years?
Darapaneni: On current trajectories, yes—but with caveats. Mining capacity for lithium, nickel, and cobalt is expanding, yet processing remains concentrated (often in China), and policy moves—tariffs, licensing, and export controls—can quickly tighten markets. That means automakers in both countries are likely to meet core demand, but exposure to midstream bottlenecks and policy shocks will continue to be a strategic risk.
Jacobsen: So, will major countries like the United States—given their large automaker industries—have enough of these materials, despite tensions, to continue producing vehicles at or above their current capacity?
Darapaneni: The current situation requires caution. The United States and other economies are being very mindful of producing more than demand currently allows. That trend is definitely visible.
Jacobsen: Thank you very much for your time today. I appreciate it.
Darapaneni: Thank you. Goodbye.
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