The establishment of the Minerals Security Partnership (MSP), led by the United States, marks a crucial step towards developing resilient and eco-friendly supply chains for critical energy minerals. Recently, India joined the partnership as one of its members, alongside 12 other countries and the European Union. India’s inclusion in the MSP is expected to strengthen its efforts to secure the supply of critical minerals and reduce dependency on countries like China.
Understanding the Partnership: MSP
The Minerals Security Partnership (MSP) is an initiative led by the United States, aimed at enhancing critical mineral supply chains. The partnership consists of the US and 12 partner countries, including Australia, Canada, Finland, France, Germany, Japan, the Republic of Korea, Sweden, the UK, the European Commission, Italy, and now India.
The Need for Secure Critical Minerals Supply Chains
India’s growth strategy hinges on the widespread adoption of electric vehicles and the promotion of electronics manufacturing. Both of these sectors rely heavily on critical minerals such as cobalt, nickel, lithium, and rare earth elements. Ensuring a secure supply chain for these minerals is crucial to support India’s transition and reduce dependence on imports.
India’s Diplomatic Push for MSP Membership
Recognizing the importance of securing critical minerals, India made a concerted diplomatic effort to join the MSP. Concerns were raised within the Indian government regarding the country’s exclusion from the partnership and the potential overreliance on China for critical minerals. The inclusion of Italy earlier this year further highlighted the need for India to actively participate in the MSP.
India’s Role in the MSP
India’s induction into the MSP was warmly welcomed by the United States, highlighting the country’s commitment to developing sustainable and diverse critical energy minerals supply chains. As a member of the MSP, India will collaborate with other countries to share expertise, develop battery materials, and establish mineral processing facilities.
Focus Areas: Cobalt, Nickel, Lithium, and Rare Earth Minerals
The MSP is expected to prioritize the supply chains of cobalt, nickel, lithium, and rare earth minerals. These minerals play a vital role in battery production for electric vehicles and are critical components in semiconductor and high-end electronics manufacturing. Currently, China dominates the rare earth minerals market, making it imperative for countries like India to secure alternative sources.
India’s Rare Earth Mineral Potential
India possesses some rare earth minerals, including lanthanum, cerium, neodymium, praseodymium, and samarium. However, it lacks access to heavy rare earth elements (HREE) such as dysprosium, terbium, and europium in extractable quantities. Presently, India heavily relies on China for HREE, which accounts for approximately 70% of global production. Joining the MSP will enable India to diversify its rare earth mineral supply sources.
India’s Entry into the Lithium Value Chain
India’s entry into the lithium value chain comes at a crucial time when electric vehicles are predicted to disrupt the automotive sector. With advancements and alternatives to lithium-ion technology on the horizon, 2023 could be an inflection point for battery technology. India’s involvement in the MSP will enable it to access the latest developments and enhance its position in the lithium value chain.
Securing Critical Minerals Supply Chains
India’s induction into the Minerals Security Partnership marks a significant step towards securing critical minerals supply chains for its electric vehicle and electronics manufacturing sectors. By joining hands with other countries, India aims to reduce its dependency on China and diversify its sources of critical minerals. This partnership will facilitate collaboration, expertise sharing, and the development of sustainable and resilient supply chains, supporting India’s growth strategy and ensuring a secure future for critical mineral resources.