The Ministry of Mines, Government of India, recently released its foremost report on “Critical Minerals for India”. The report was compiled by an expert team appointed by the Ministry of Mines. It lists and ranks minerals that are essential to different industrial sectors, reflecting India’s goal of building a strong and resilient mineral sector. This aligns with the broader objective of achieving ‘Net Zero’ emissions.
Understanding Critical Minerals
Minerals are natural substances formed through geological processes, possessing a specific chemical composition and physical properties. They are categorized as metallic and non-metallic minerals based on their characteristics and uses. Metallic minerals contain metals or metal compounds such as iron, copper, gold, silver, etc. Non-metallic minerals do not contain metals and include limestone, coal, mica, gypsum, etc.
Critical minerals are those necessary for economic development and national security. Lack of these minerals, or their extraction and processing concentrated in a few locations, could cause supply chain vulnerabilities or disruptions. Critical mineral declaration is a dynamic process that evolves with changes in technology, market dynamics, and geopolitical factors. Different countries have varying lists of critical minerals, contingent on their unique circumstances and priorities, with the US declaring 50 minerals critical, Japan recognizing 31, the UK listing 18, EU (34), and Canada (31).
The Expert Committee under the Ministry of Mines has identified 30 critical minerals for India. In addition, the committee recommends establishing a Centre of Excellence for Critical Minerals (CECM) in the Ministry of Mines, which would periodically update India’s list of critical minerals and announce the critical mineral strategy regularly.
Why are Critical Minerals Important to India?
Critical minerals play a crucial role in industries like high-tech electronics, telecommunications, transport, and defense, which heavily rely on these minerals. Furthermore, these critical minerals are fundamental to green technologies such as solar panels, wind turbines, batteries, and electric vehicles. The growth of industries reliant on these minerals can lead to job creation, income generation, and innovation and is in line with India’s significant domestic demand and potential.
For defense, aerospace, nuclear, and space applications, using high-quality and reliable materials capable of enduring extreme conditions and performing complex functions is crucial. To ensure defense readiness and self-reliance, India needs a stable supply of critical minerals. In terms of environmental sustainability, critical minerals are key to transitioning towards clean energy and a low-carbon economy, reducing reliance on fossil fuels and greenhouse gas emissions. Given India’s commitment to achieving a 450 GW renewable energy capacity by 2030, these minerals are vital for reaching the country’s green objectives.
Another significant aspect is international cooperation, which allows India to diversify its import sources, lower dependence on China, and improve mineral security and resilience.
Challenges for India in Relation to Critical Minerals
India is currently facing several challenges related to critical minerals. For instance, the ongoing Russia-Ukraine conflict has implications as Russia produces various critical minerals, while Ukraine holds reserves of lithium, cobalt, graphite, and rare earth elements.
Moreover, India has limited reserves of critical minerals such as lithium, cobalt, and other rare earth elements. Most of these minerals are imported, making India highly dependent on other countries for supplies. This dependence creates vulnerability in case of price fluctuations, geopolitical factors, and supply disruptions.
The transition to renewable energy technologies and electric vehicles has increased the demand for minerals such as copper, manganese, zinc, lithium, cobalt, and rare earth elements. Considering India’s limited reserves and heightened requirements, it becomes dependent on foreign partners to meet domestic needs.
Conclusion
India can seize the opportunity to strengthen its international cooperation and partnerships through strategic critical mineral management. By participating in initiatives like the US-led Mineral Security Partnership (MSP), India can contribute to the establishment of global critical mineral supply chains. Additionally, bilateral agreements with countries like Australia, Canada, Japan, and South Africa could further enhance India’s role in critical mineral exploration, development, processing, and trade.