**Title:** Industry-Government Collaboration Essential for Rare Minerals Strategy
**Meta Description:** Collaboration between industry and government is vital for addressing rare minerals dependencies, as highlighted by the CII President.
**URL Slug:** industry-government-collaboration-rare-minerals
**Headline:** Strategic Collaboration Between Industry and Government Needed to Tackle Rare Minerals Dependency
In a recent statement, the President of the Confederation of Indian Industry (CII) emphasized the importance of collaboration between industry and government to address the growing dependency on rare minerals. This partnership, which has already shown success in the semiconductor sector, is crucial for developing a long-term strategy to mitigate potential shortages of rare-earth minerals.
Rajiv Memani, the CII President, pointed out that there is no quick fix for the challenges posed by rare-earth mineral shortages. “It’s a long-term solution,” he stated, underscoring the necessity for a comprehensive, product-led approach. He outlined key considerations for this strategy, including identifying the specific minerals required, the technology needed, and the policy and financial support necessary for the industry.
Rare earth elements (REEs) play a vital role in modern technology, being integral to products such as smartphones, electric vehicles, and advanced military equipment. Countries rich in REE deposits have become significant players in the global market, influencing international supply chains. Memani specifically noted the automotive sector’s vulnerability to shortages of these critical minerals, highlighting concerns from automobile manufacturers regarding potential supply chain disruptions.
To address these challenges, Memani proposed that India must identify major risks within its supply chains. “If it’s minerals, then they need to create a minerals strategy—either how to produce them domestically or where to import them from, along with the support the private sector requires from the government,” he explained.
He acknowledged the complexities involved in establishing domestic production capabilities, particularly due to cost disadvantages compared to established global players. “Many things are not viable in themselves because of the cost of production—many countries have built such scale that their cost of production is quite low,” he noted, emphasizing the need for government support through policy measures and assistance to the private sector.
Memani also highlighted additional challenges posed by regulatory frameworks, especially concerning radioactive minerals. “Many minerals are radioactive, and the Department of Atomic Energy is also involved. A comprehensive strategy should be developed regarding which countries to partner with,” he advised.
Drawing on international experiences, Memani referenced Japan’s decade-long efforts in this sector, noting that despite their extensive work, they have only achieved around 40 percent value addition. “They have been at it for 10 years,” he said, illustrating the time-intensive nature of building capabilities in rare minerals.
In conclusion, the collaboration between industry and government is essential for India to navigate the complexities of rare minerals dependency. By developing a strategic approach, India can enhance its position in the global supply chain and ensure the sustainability of its technological advancements.
**FAQ:**
**Q: Why is collaboration between industry and government important for rare minerals?**
A: Collaboration is crucial to develop a comprehensive strategy that addresses supply chain risks, identifies necessary minerals, and secures the required support for production and technology.
