Why mineral are critical
- Two important steps have been taken by the government in the past year on the subject of critical minerals.
- The first was to identify a list of 30 critical minerals (apart from rare earths, which are clearly identified in the periodic table) in July 2023
- The second was to amend the existing mining laws in November 2023 to allow private sector participation in the auction of 20 blocks of critical.
Critical minerals:
- Identified: India has identified 30 crucial minerals essential for various industries, including clean energy, defense, and fertilizers.
- Significance: These minerals are vital for achieving clean energy goals and national development. The growing demand for electric vehicles and renewable energy creates a massive need for these resources.
- Global demand: The global demand for critical minerals is expected to skyrocket due to climate change mitigation efforts, making strategic planning and resource security crucial for India.
Challenges and concerns:
- Concentration: Critical mineral reserves are heavily concentrated in a few countries, mainly China, creating vulnerabilities in global supply chains due to uneven distribution and processing capabilities.
- Chinese dominance: China's dominance in refining critical minerals and rare earths raises concerns about its potential to influence global supply chains and technological advancements through its monopoly.
- Dependency risks: India's ambitious clean energy goals rely heavily on critical minerals, particularly for battery manufacturing and renewable energy infrastructure.
- Despite efforts to secure resources through agreements with other countries, India remains heavily reliant on imports, posing challenges for domestic industries and technological advancements.
India's response:
- International collaboration: India's participation in initiatives like the US-led Minerals Security Partnership
- Aims to strengthen supply chains by collaborating with countries holding critical mineral deposits and processing expertise, reducing dependency risks.
Long-term solutions:
- Strategic planning: The lack of access to critical minerals and processing technology could hinder India's decarbonization journey.
- Long-term strategic planning and resource diversification are essential to overcome these challenges.