Highlights

• CII President calls for comprehensive long-term policy to address India's rare earth and critical mineral vulnerabilities
• Strategic public-private collaboration identified as key to overcoming technological and supply chain challenges
• Automotive and EV sectors are highlighted as critically exposed to current mineral supply chain fragilities.

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In an interview with Mint (opens in a new tab), Rajiv Memani, President of the Confederation of Indian Industry (opens in a new tab) (CII), urged a strategic industry-government alliance to address India’s growing vulnerabilities in rare earth and critical minerals. Echoing lessons from India’s semiconductor turnaround, Memani emphasized there is “no short-term fix” for rare mineral dependency and called for a comprehensive, long-term industrial policy—backed by targeted financing, regulatory reform, and international partnerships.

He identified the automotive sector as particularly exposed, with supply chain fragility threatening India’s EV ambitions. Memani acknowledged that establishing domestic rare earth value chains faces steep hurdles, including high production costs, regulatory restrictions (especially concerning radioactive elements), and lack of scale. Yet he pointed to the success of India’s semiconductor PLI (Production Linked Incentive (opens in a new tab)) scheme as proof that well-orchestrated public-private collaboration can overcome even entrenched technological deficits.

REEx Analysis:

Memani’s message is both pragmatic and strategically sound. His candid recognition of India’s limited short-term leverage in rare earths sets this commentary apart from overly optimistic political narratives. Importantly, his call for a “product-led strategy”—backward integrating from end-use sectors like the automotive industry—mirrors the successful policy sequencing used in Taiwan, South Korea, and, more recently, India’s own chip sector.

Memani’s clear-eyed realism about timelines makes sense. Memani’s assertion that rare earth security is a “seven- to ten-year” national project is accurate. Japan’s 40% value-add ceiling after a decade of effort proves the long climb ahead.  An emphasis on regulatory reform is real.  His mention of bottlenecks with India’s Department of Atomic Energy is critical. Monazite-rich sands in India’s coastal regions are rich in REEs like cerium and neodymium—but remain legally restricted due to thorium content. Ultimately, integration with the private sector is essential. Unlike Western strategies that focus solely on government subsidies, Memani’s model envisions the Indian industry co-leading in R&D, exploration, and refining.

Are there any speculative elements or assumptions? While India’s semiconductor PLI scheme has promise, actual fabrication remains in the early stages. Rare earths involve far more complex and riskier extraction and refining cycles—particularly with radioactive byproducts. So, any comparison is questionable.  Plus, where’s the midstream?

The article lacks discussion on intermediate steps like REE separation, magnet manufacturing, and alloy processing. Without these, upstream mining won’t create end-use independence.

Final Thoughts

Rajiv Memani’s remarks mark a turning point in India’s rare earth policy conversation—shifting it from passive vulnerability to proactive strategy. While execution will be complex, his framework offers a credible blueprint: start with product-linked need, map mineral inputs, deregulate domestic potential, and co-invest with trusted global partners.

As Rare Earth Exchanges™ has repeatedly argued, nations that move first to align mineral strategy with manufacturing strategy will dominate the 21st-century industrial order. India has the chance to be one of them—but only if it starts now.