Auto Sector Facing Deeper Rare Earth Crisis Than Acknowledged, Says CII President Rajiv Memani

Newly appointed CII President Rajiv Memani on Thursday said rare earth supply disruptions are a more serious challenge for India’s auto industry than currently acknowledged.

“In auto, the concern is more serious than what's come out so far,” Memani said, indicating that guidance from several companies already points to lower production levels in the coming months.

While much of the public attention has been on electric vehicles, Memani clarified that the issue spans the broader automotive sector and other industries dependent on critical minerals. "It’s not just about EVs. The concern is wider, and it affects multiple sectors," he noted.

Memani said he was not aware of any government-to-government engagement with China on resolving the supply bottlenecks but added that the situation serves as a much-needed wake-up call. “This is a moment to re-examine all critical supply chain dependencies,” he said.

India should accelerate efforts on domestic refining and production of key minerals and explore alternate partnerships, according to him. “Talks with Japanese industry are ongoing, and Indian industry should proactively pursue self-reliance in critical minerals,” Memani said.

His comments come amid increasing concerns over China’s tightening grip on rare earth exports, which are crucial for high-tech manufacturing, defence, and clean energy sectors.