Jun 3, 2026 · 1h 7m · neon-show
India's Answer To China's Control On Global Supply Chain | Bhaktha, Chara Tech
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gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions
In this episode of The Neon Show, Chara Technologies founder Bhaktha Keshavachar discusses how his startup engineered software-defined, rare-earth-free reluctance motors to break China's monopoly on critical supply chains. He details the technological, manufacturing, and venture challenges of building sovereign deep tech in India to accelerate the global clean energy transition.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Siddhartha holds 16.5% of the talking time here. How this is scored →
Siddhartha as informed peer 3.7 Guest teaching 5.2 Guest disagreement 1.1 Siddhartha pushing back 1.2
speaking balance: gold is Siddhartha, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 45:54 Guest punctures superpower optimism
The guest candidly pushes back against optimistic superpower rhetoric, noting he has heard that promise twice before in his life without it materializing.
Hardest push from Siddhartha ▶ 46:09 Host defends India's progressThe host gently intervenes against the guest's skepticism about past superpower promises, arguing that India has demonstrably come a long way and that conviction is essential.
Biggest teaching moment ▶ 6:15 The chemistry and extraction math of rare earthsThe guest educates the host on why rare earths are named rare despite abundant deposits, comparing ore concentration yields to gold and iron and explaining the extreme radioactive waste footprint.
Siddhartha holds their own ▶ 57:22 Host synthesizes Intel's three-front strategic failureThe host demonstrates deep tech market domain expertise by structuring Intel's collapse across AI processors to NVIDIA, mobile architecture to ARM, and fabrication to TSMC.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | Siddhartha as informed peer | Guest teaching | Guest disagreement | Siddhartha pushing back | Why |
|---|---|---|---|---|---|---|
| China's Rare Earth Monopoly and the 2025 Export Embargo | 4 | 5 | 1 | 1 | The host opens with concrete data points regarding China's rare earth processing monopoly and the 2025 embargo. The guest explains the fundamental role of neodymium-ferrous-boron magnets in PMSM motors and draws a historical parallel to the 1970s oil crisis. | |
| The Chemistry, Extraction Hazards, and Geopolitical Strategy of Rare Earths | 2 | 7 | 1 | 1 | The host takes a passive student role as the guest provides a detailed chemistry lesson on the periodic table, heavy versus light rare earths, and the extreme toxicity and radioactive waste generated during extraction. The guest also highlights China's decades-long geopolitical foresight. | |
| The Genesis of Chara and Reviving Reluctance Motors | 3 | 6 | 1 | 1 | The host prompts on the origin of Chara and its technology. The guest explains the shift from hydrocarbons to electrons, the mechanical difficulties of reluctance motors, and the core R&D required to stabilize them. | |
| Software-Defined Control and Hardware IP Protection | 5 | 5 | 1 | 2 | The host demonstrates prior research on reluctance motor engineering challenges like noise and non-linear torque ripple, and questions hardware reverse engineering vulnerabilities. The guest elaborates on software-defined control algorithms and applies security concepts from fintech. | |
| Overcoming Early Investor Skepticism and the Geopolitical Realization | 4 | 4 | 1 | 1 | The host shares insights into venture fund mechanics and second-time founder backing. The guest recounts early investor skepticism and the moment Kalaari Capital backed Chara purely on geopolitical conviction. | |
| Climate Non-Linearities and India's Critical Technology Pillars | 3 | 6 | 2 | 1 | The host asks if India is doing enough in climate tech and suggests urban water extraction examples. The guest reframes Earth as a complex non-linear system and lists the five non-negotiable sovereign technology pillars every nation must control. | |
| Chara's Early Engineering Journey and Pivot to In-House Manufacturing | 3 | 5 | 1 | 1 | The host tracks the timeline and team formation. The guest shares the startup's transition from an ARM-style IP licensing business model to full in-house hardware manufacturing in Peenya. | |
| Overcoming Engineering Failures, Greaves Cotton Partnership, and Government Ties | 3 | 6 | 1 | 1 | The host inquires about early engineering failures and major commercial partnerships like Greaves Cotton. The guest describes rotor-stator collision issues caused by centrifugal expansion and sudden government interest following the embargo. | |
| The Growth Capital Dilemma in Indian Deep Tech | 5 | 4 | 1 | 2 | The host cites macroeconomic funding numbers showing deep tech capital doubling in India but highlights the missing domestic Series B/C growth ecosystem. The guest agrees and argues the onus is on founders to prove unit economics to generalist growth funds. | |
| Technological Sovereignty and India's Superpower Trajectory | 3 | 5 | 2 | 2 | The host asks about India's trajectory as a potential superpower over the next twenty years. The guest notes historical unfulfilled superpower promises and stresses digital and technological sovereignty over foreign software stacks. | |
| Founder Mindset, Second-Time Founders, and Industrial Family Offices | 4 | 4 | 1 | 1 | The host explores the psychological differences between first-time and second-time founders. The guest discusses financial freedom and challenges legacy industrial family offices to seed high-risk domestic deep tech projects. | |
| Chara's Commercial Inflection Point and Scaling Roadmap | 4 | 4 | 1 | 1 | The host prompts on production milestones and operational scale. The guest shares hard shipment numbers, moving from a few hundred to thousands of units monthly, emphasizing that next year's execution is make-or-break. | |
| Lessons from Intel's Decline in Mobile and GPUs | 5 | 6 | 1 | 1 | The host concisely outlines Intel's strategic loss of leadership across AI, mobile, and manufacturing. The guest draws from his past experience at Intel, revealing how ASP disparity caused Intel to pass on the original iPhone chip. |
Statements from this episode (23)
Keshavachar: China's April 2025 rare earth embargo shut down global companies
“They did an embargo on the export of rare earth-based magnets and a few other components in April of 25. So that led to shutting down Several companies all around the world.”
Keshavachar: Rare-earth PMSM is the only deployed efficient motor tech today
“Today the only way to build an efficient motor is using the rare earth-based magnets. It's called PMSM motor. There's no other technology that is deployed”
Keshavachar: Next civilization will be built on rare earths
“I strongly believe that the next civilization, ah, will be built on rare earths. Whoever controls the rare earths will have an upper hand.”
China holds 50% of rare earth reserves, followed by Brazil and India
“China has close to 50% of the known ore in this world. Then I think it is Brazil. Incidentally, India is the third largest.”
Keshavachar: One ton of ore yields just one gram of rare earths
“If you take one ton of rare earth, you get one gram of rare earth, ah, one gram of rare earth mineral. That is why they are called rare earth. It's extremely difficult to extract.”
Keshavachar: Each ton of rare earths generates 2,000 tons of radioactive waste
“Every ton of rare earth minerals extraction generates 2000 tons of radioactive waste.”
China embargoed rare earth processing machinery three years before banning magnets
“The processes and the machinery for extraction And making the final application magnets in our case. Ah, both, ah, China introduced an embargo about three years ago on the export of that machinery. Long before they actually did the embargo on the red earth mag…”
Keshavachar: Japan is better prepared for rare earth bans than other nations
“Japan was the first country that affect, that was affected by this ban, and I believe that they are in a far better position now, because they've diversified, they figured out what to do. They're in a slightly better position than all the other countries now. …”
Keshavachar: India has not invested in core technologies and remains a net importer
“India as a society, as a country, we have not invested in core technologies. We're a net importer, right?”
Keshavachar: India lacks battery production capacity and imports every cell
“Ah, the third one is batteries, which India still does not have any production capacity. I know they're all coming up, but as of now, every cell that used in India is imported from outside.”
Keshavachar: India is far behind on four of five critical technologies
“But all these things will be there. Semiconductors will not go away. Batteries will not go away. Rairs will not go away. AI will not go away. Nuclear will not go away. I think these five technologies are critical. We have one, I think which is nuclear. All the…”
Keshavachar: Chara pivoted to manufacturing after IP licensing failed with three companies
“We tried to do that licensing thing. We worked with three large companies, did not pan out, to put it bluntly. And that is when we said, no, we have to enter the business. So we became a classic product company. We build the products and sell it to our custome…”
Keshavachar: India has invested roughly $1 billion into rare earth manufacturing
“Now the government has invested approximately a billion dollars into rare earth extraction and manufacturing.”
Ahluwalia: Indian deep tech raised $1.06B in 2025, doubling 2024
“In 25, the deep tech sector combined raised some 1.06 billion dollars in private equity. And this was double of the amount they raised in 24, right?”
Keshavachar: Indian deep tech startups must look abroad beyond $10M rounds
“So there is support for pre-seed, seed, pre-series A and series A, whichever way you define it, initial stages, let's say up to ten million dollars rounds. Beyond that, it is harder in India. We have to look outside.”
Keshavachar: All deep tech companies are inherently global businesses
“And all the deep tech companies typically, without exception, are worldwide businesses. Because the problems are, ah, same.”
Keshavachar: India can become a superpower in 20 years through tech sovereignty
“And I think if we get this, all these things right, ah, in the next 20 years, I think we will actually be a the quote-unquote superpower because we can exert our influence.”
Keshavachar: Deep tech startups need conviction in problem, market, and execution above PMF
“I think the conviction is in terms of the problem definition, in terms of the market opportunity, and in terms of that I can actually do this. I think those are the three things that are needed for a deep tech startup. I don't, I did not even mention market si…”
Keshavachar: Heirs of major industrial houses should build deep tech companies
“Especially, I would like to say the second generation, third generation of the big, ah, industrial houses, I think they should do this. That's what I'm trying to say.”
Keshavachar: Chara Tech generated about 1 crore rupees in revenue last year
“Last year, we made a little bit of revenue. We sold a few hundred motors generated about a crore of rupees.”
Keshavachar: Intel acquired DSPC for $2B but never committed to mobile
“Intel made a large acquisition of two billion dollars. Then in the late nineties, acquired a company called DSPC from Israel. We all went to Israel, did due diligence, and with, and I was in that group, ah, and Intel never put the, ah, the mindshare into the m…”