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Introduction
- Critical minerals underpin modern technologies, clean energy, and national security.
- India’s overdependence on imports jeopardises industrial and strategic autonomy.
The Geostrategic Importance of Critical Minerals
Definition and Role
- Critical minerals are essential for:
- Electric vehicles (EVs)
- Renewable energy infrastructure
- Semiconductors and advanced electronics
- Key examples: lithium, cobalt, nickel, graphite, rare earth elements (REEs)
Demand Drivers
- Accelerated by:
- Global clean energy transitions
- Supply chain diversification
- Strategic decoupling in tech sectors
Geopolitical Concerns
- Global supply chains are highly concentrated:
- China refines:
- 90% of REEs
- 70% of cobalt
- 60% of lithium
- China''s dominance is due to sustained policy planning and industrial investment.
India’s Policy Response and Strategic Position
National Initiatives
- 2022: Government identifies 30 critical minerals.
- 2025: Launch of National Critical Mineral Mission (NCMM).
Key Challenges
- 100% import dependency on key minerals.
- Limited midstream capabilities: refining, separation, and processing.
Exploration and Auctions: Progress and Barriers
Policy Reforms
- Mines and Minerals (Development and Regulation) Act updated.
- 5 rounds of auctions held by early 2025.
Ongoing Bottlenecks
- Low investor participation due to:
- High capital costs
- Lack of technical expertise
- Inadequate domestic processing capacity
Industrial Capability and Strategic Investments
Proposed Solutions
- Establish mineral processing and refining zones.
- Offer Production-Linked Incentives (PLI) for:
- Mineral separation
- Refining and value addition
- Attract private sector participation in midstream and downstream processing.
Managing External Risks and Supply Chain Security
Emerging Risks
- China’s export curbs have disrupted:
- EV battery production
- Electronics supply chains
Strategic Responses
- Strengthen bilateral mineral partnerships (e.g., with Australia, Argentina).
- Engage in global alliances like:
- Minerals Security Partnership (MSP)
- Quad and G20 platforms
Sustainability, Recycling, and ESG Frameworks
Circular Economy Opportunities
- Promote battery and e-waste recycling.
- Address gaps in:
- Formal recycling infrastructure
- High-efficiency material recovery
- Regulation of informal sector
Environmental and Social Governance (ESG)
- Many reserves located in:
- Tribal areas
- Ecologically fragile zones
- Solutions include:
- Transparent ESG compliance
- Community participation and benefit-sharing
Strategic Alignment and Way Forward
Policy Recommendations
- Conduct periodic assessments of critical mineral demand and risk.
- Maintain national stockpiles for emergency buffer.
- Align mineral strategy with:
- Foreign policy
- Energy transition
- Industrial growth goals
Conclusion
- Reducing import dependence and developing domestic capacity is essential.
- With coordinated policies and international partnerships, India can emerge as a leader in the critical minerals economy.
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