India’s dependence on fragile global supply chains for rare minerals could trigger disruptions as severe as those during COVID-19, warns Confederation of Indian Industry (CII) President Rajiv Memani. “Supply chain resilience has become a big issue from COVID times. This is most visible and impactful in the rare minerals sector. There is no short-term fix to this… It needs to be done urgently because these situations can recur,” he said.

Memani sees industry-government collaboration — like in semiconductors — as critical to tackling rare mineral shortages. “It’s a long-term solution,” he says, urging a product-led strategy.

“What are the minerals that are required for that? What is the technology that’s required for that? What is the policy support or financial support that that industry or sector needs?” he asks, pressing for swift action despite the complexity.

Rare earth elements (REEs), crucial for smartphones, EVs, and defense gear, are increasingly shaping geopolitical power. Memani warns of vulnerabilities in sectors like automotive. “When I talk to automobile companies, they say this will really make a difference,” he noted.

He stressed that India must map risks and decide whether to produce minerals locally or secure imports, backed by government support. But replicating global giants remains tough. “Many things are not viable… many countries have built such scale that their cost of production is quite low,” he explains.

Regulations add hurdles, especially for radioactive minerals involving the Department of Atomic Energy. “So often, after talking with them, a big urgent strategy should be made about which countries to partner with,” he says.

Still, Memani is optimistic. “Once the ecosystem develops, then it becomes a very strong, competitive strength,” he notes, drawing parallels with semiconductors.

“It will take several years. It’s not like this problem will be solved in six months. But we have to start,” he concluded.