The Critical Minerals Age – Strategic Imperatives for India and the World
The Critical Minerals Age – Strategic Imperatives for India and the World
Context:
- The article discusses the growing importance of critical minerals in global geopolitics, economic strategies, climate initiatives, and technology development.
- It draws comparisons with previous historical periods named after key metals and stresses the urgent need for India to develop and secure its mineral resources for economic and strategic benefits in the 21st century.
Historical Evolution of Metal Use:
- About 7,000 years ago, humans moved from the Neolithic to the Chalcolithic Age, beginning metal use.
- Followed by the Bronze and Iron Ages, each defined by increased metal utilization.
- The 19th and 20th centuries saw coal and oil power the first two Industrial Revolutions.
- The 21st century is called the Critical Minerals Age, with rare minerals playing a crucial role in modern technologies.
Strategic Importance in Global Politics:
- Geopolitics:
- The US under Trump prioritized control over mineral-rich areas like Canada, Greenland, and Ukraine.
- China uses its dominance in rare earth minerals as leverage in trade disputes.
- US domestic policy changes include opening large federal lands for mineral exploration and drastically reducing approval times for mining projects.
Climate Change and Technological Demand:
- Green technologies such as electric vehicles (EVs), solar panels, and wind turbines require large amounts of minerals.
- EVs use six times more minerals than traditional cars; offshore wind farms need nine times more minerals than fossil fuel plants.
- Technologies from the Fourth Industrial Revolution (AI, robotics, digital infrastructure) demand minerals like copper (for conductivity), lithium, cobalt, and nickel (for batteries).
Supply Chain Concentration and Risks:
- Critical minerals are concentrated in few countries:
- Cobalt mainly from the Democratic Republic of Congo.
- Indonesia controls about half of global nickel mining.
- China dominates rare earth mining and processing (66% mining share, over 90% processing).
- Lithium production is centered in Australia, Chile, and China.
- China’s control over processing facilities for copper, aluminum, rare earths, and others poses risks to global supply chains, especially for EV and clean energy industries.
India’s Position and Strategic Priorities:
- Challenges:
- Mineral reserves in India are under-explored.
- Heavy reliance on imports for essential minerals.
- Limited domestic processing capabilities.
- Strategic responses:
- Adopt fast-track policies for exploration and processing, similar to the US.
- Focus on domestic exploration to reduce import dependence and boost manufacturing self-reliance.
- Utilize India’s geological resources to achieve mineral independence and strengthen industrial competitiveness.
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