CII President Rajiv Memani has underscored the urgent need for a long-term, strategic collaboration between industry and government to address India’s growing dependency on rare-earth minerals. Drawing from the success of India’s semiconductor mission, Memani stressed that a similar, unified approach is essential to navigate the complex rare mineral landscape. “There is no short-term fix for this. It’s a long-term solution,” he said, highlighting the need for a comprehensive, product-led strategy backed by strong policy and financial support.
Building a Product-Centric Roadmap
Rare earth elements (REEs) are indispensable in a range of modern technologies—including smartphones, electric vehicles, and advanced defence systems. With global competition intensifying, Memani called on India to swiftly identify critical risks in its supply chains and frame a dedicated minerals strategy—be it local production or secure import mechanisms.
Automotive Sector at High Risk
Memani pointed to the automotive sector’s heightened exposure to supply disruptions. “When I talk to automobile companies, they say this will really make a difference,” he noted., stressing the urgency to safeguard this key segment of India’s manufacturing economy.
Memani added, “India will have to identify where there are major risks in their supply chains. If it’s minerals, then they need to create a minerals strategy—either how to produce them here or where to import them from, and what support the private sector needs from the government.”
Domestic Production Faces Global Cost Hurdles
Memani acknowledged that scaling up domestic production comes with serious cost challenges. Global players enjoy massive scale and deeply integrated backend operations, which make their cost of production far lower than what India can currently achieve.
“Many things are not viable in themselves because of the cost of production,” he said. “Replicating those efficiencies immediately is very difficult.” This, he argued, makes a strong case for government backing through subsidies, incentives, and enabling policies.
Regulatory Complexities Add Another Layer
“Many minerals are radioactive, and the Department of Atomic Energy is also involved,” he explained. This necessitates careful coordination and a unified national strategy to identify potential global partners and secure sustainable sources.
Lessons from Japan and India’s Semiconductor Drive
Memani cited Japan’s decade-long efforts in rare minerals. “They’ve been working on this for years and still achieved only about 40% value addition,” he said. Memani expressed optimism about the semiconductor industry’s development path. “As the semiconductor industry grows in India, the entire ecosystem will evolve over the next seven to eight years,” he said. According to him, this ecosystem-building approach will prove equally effective for the rare minerals sector. “Once the ecosystem develops, it becomes a significant competitive strength,” he added. Call to Action: Start Now, Win Later
As reported by msn.com, Memani’s remarks reflect a growing consensus that strategic, government-enabled industrial collaboration is key to building India’s self-reliance in critical minerals—and ensuring long-term resilience in high-tech manufacturing.
