Image Source: Financial Times
Cooperation between industry and government is the solution for India to shake off its increasing reliance on rare minerals, believes Confederation of Indian Industry (CII) President Rajiv Memani. To address recent apprehensions, Memani said the answer is itself long-term and requires combined, product-based thinking. The solution requires us to spot key minerals, needed technology, and the policy or finance required for the industry to succeed, he added.
Rare earth elements (REEs) are essential in new technologies such as smartphones, electric cars, and military hardware. The automotive industry is most at risk from potential supply chain disruption. "If I talk to the car industry, they tell me that this will actually make a difference," Memani said, emphasizing the necessity of a minerals strategy.
Memani highlighted India's cost disadvantage vis-a-vis proven global players and the fact that many countries have achieved large scale and backend integration, which cannot be replicated in the near term easily. He called for the government to give strong support—policy, finance, and regulatory clarity—to allow domestic industry to compete on the global stage.
As most of the rare minerals are radioactive, regulatory concerns with organizations like the Department of Atomic Energy make it even more difficult. Memani has proposed an immediate, strategic effort, including international cooperation, motivated by Japan's ten-year experience that has seen only small steps so far.
India is attempting hard to diversify its sources of supply by tying up with countries like Australia, Brazil, Chile, and Argentina and increasing domestic production under the National Critical Minerals Mission. All these measures are aimed at reducing dependence on China, which has a monopoly on rare earth supplies in the world at present.
Key. Highlights:
No quick solution: Product-based long-term strategy needed for rare minerals' security. Automotive industry at risk: Extremely susceptible to supply chain interruptions.
Support from government is vital: Policy, funding, and regulatory measures required.
International alignments: India looking to ally with Australia, Latin America.
Domestic initiatives: National Critical Minerals Mission and circular economy plans.
Source: The Economic Times, ANI News, NDTV Profit, Angel One
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