“Critical minerals are the backbone of the global clean energy transition and strategic technologies.” In light context, discuss India’s approach towards securing critical mineral supply chains and the challenges in securing the same. 15M

Critical minerals are metallic or non-metallic elements essential for modern technologies, national security, and economic development. These minerals power clean energy technologies such as electric vehicles (EVs), wind turbines, solar panels, semiconductors, and high-performance defence applications. India’s growing needs in green energy and strategic sectors have amplified the urgency to secure critical mineral supplies.

India’s Approach to Critical Minerals Security:

1.    Identification and Classification:

• In 2023, the Ministry of Mines released India’s first-ever list of 30 critical minerals, including lithium, cobalt, nickel, vanadium, titanium, and rare earth elements (REEs).
• Minerals were identified based on their economic importance and the risk of supply disruption, factoring in strategic sectors such as EVs, defence, semiconductors, and clean energy.

2.   Legal and Institutional Framework:

• Amendments to the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) allowed private mining of six key critical minerals, including lithium, titanium, and tantalum.
• Creation of a proposed Centre of Excellence for Critical Minerals (CECM) to update the list and promote R&D.

3.   Global Cooperation:

• India joined the Mineral Security Partnership (MSP) in 2023, led by the US and allies, to ensure secure and sustainable global supply chains for critical minerals like lithium, cobalt, and REEs.
• Bilateral initiatives like the India-Australia Critical Minerals Investment Partnership aim to strengthen mining collaboration.

4.   Royalty Reforms:

• In 2024, the Union Cabinet notified lower royalty rates for lithium (3%), niobium (3%), and REEs (1%) to attract private and foreign investments in mining.

Challenges in Critical Mineral Management:

1.    Heavy Import Dependence:

• India imports 80% of its lithium and 85% of its cobalt from China, which dominates global REE production with 60-70% market share.

2.   Environmental and Health Concerns:

• Mining of these minerals can lead to radioactivity exposure, air and water pollution, and soil degradation.
• E.g., beryllium mining is associated with lung diseases like berylliosis.

3.   Geopolitical Risks:

• Some critical minerals, like tantalum and cobalt, are sourced from politically unstable regions such as the Democratic Republic of Congo, often involving child labour and conflict financing.

4.   Inadequate Infrastructure:

• India lacks advanced refining, processing, and recycling capabilities for critical minerals.
• Less than 1% of critical minerals from electronic waste are recycled (UNEP data).

5.   High Processing Costs:

• Minerals like tantalum and titanium require high-temperature, energy-intensive processing, increasing costs and carbon footprint.

Way Forward:

1.    National Critical Minerals Policy:

• A comprehensive national framework should be instituted under the MMDR Act to define vision, targets, and inter-ministerial coordination.

2.   Enhance Exploration:

• India should invest in offshore, deep-sea, and satellite-based mineral exploration, especially in mineral-rich but untapped areas.

3.   Promote Domestic Manufacturing & Recycling:

• Build a circular economy with focus on urban mining, e-waste recycling, and resource efficiency.

4.   Strategic Reserves and Stockpiles:

• Like crude oil reserves, India should maintain strategic reserves of lithium, cobalt, and other key inputs.

5.   Diversification of Sources:

• Secure long-term offtake agreements with nations like Australia, Brazil, and Argentina.
• Join alliances like the G7’s Sustainable Critical Minerals Alliance to ensure fair access and ethical sourcing.

Conclusion:

“Whoever controls the supply of critical minerals controls the future of technology.” Thus, India also needs domestic infrastructure development, environmental safeguards, and a forward-looking policy to secure its economic and strategic sovereignty in the green era.

‘+1’ Value-Addition:

•  India’s demand for lithium is expected to grow 4-fold by 2030.
• ‘Lithium Triangle’ (Chile, Argentina, Bolivia) – holds 54% of global lithium reserves.
• GoI has unveiled report on “Critical minerals of India” and identified 50 minerals including nickel, titanium, vanadium, tungsten, etc.
• Lithium is also used for carbon dioxide removal and air purification (esp. in confined areas, such as spacecraft and submarines)

https://indianexpress.com/article/upsc-current-affairs/upsc-key-green-india-mission-fastag-and-green-hydrogen-10078720

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