10th July 2025 (13 Topics)

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India’s Strategic Engagement in Critical Minerals Clubs

Context:

The Quad foreign ministers (India, US, Australia, and Japan) launched the Critical Minerals Initiative to collectively secure and diversify global supply chains, positioning India’s participation in “mineral clubs” as a key element of its minerals diplomacy amid rising geopolitical and economic challenges.

Critical Minerals

Critical minerals are those that are economically important, strategically essential, and have a high risk of supply disruption.
They are crucial for advanced technologies, clean energy transitions, national defense, electronics, aerospace, and semiconductors.
Examples: Lithium, Cobalt, Nickel, Graphite, Rare Earth Elements (REEs), Titanium, Tungsten, Vanadium, Platinum Group Metals, etc.

Why Are They "Critical"?

Economic and Strategic Dependence: Key for manufacturing electric vehicles, solar panels, wind turbines, batteries, missiles, and drones.
Geographic Concentration of Supply:
- China dominates rare earth processing (>85%).
- Congo controls 70% of cobalt production.
- Australia, Chile, and Argentina lead lithium production.
Supply Chain Vulnerabilities:
- Geo-political tensions, export restrictions, or internal instability in mineral-rich nations can disrupt supply.

Significance of Critical Minerals for India:

Critical minerals (like lithium, cobalt, rare earths, nickel, graphite) are vital for India’s clean energy transition, supporting sectors such as electric mobility, solar energy, battery storage, semiconductors, and advanced manufacturing.
India is heavily dependent on China for rare earths and lacks advanced domestic extraction and processing technologies.

India’s Multilateral Strategy in Mineral Diplomacy:

India is part of groupings like the Minerals Security Partnership (MSP) and now the Quad Critical Minerals Initiative to strengthen access to reliable and diversified supply chains.
Such “mineral clubs” facilitate joint R&D, co-financing, technology sharing, and resource security through friendly stockpiling and de-risking mechanisms.

Strategic Challenges and Safeguards:

India must avoid being reduced to a low-end processing hub or transit country while high-value components remain with developed nations.
India should negotiate for technology transfer, IPR access, ESG standard shaping, and inclusive developmental benefits for the Global South.
Need for policy alignment with domestic goals like Atmanirbhar Bharat and Make in India, alongside global ESG compliance.

National Critical Mineral Mission (NCMM)

Background & Context

India is highly import-dependent for several critical and strategic minerals like Lithium, Cobalt, Nickel, and Rare Earth Elements (REEs).
To meet the clean energy goals under Net Zero by 2070, and to support Make in India and Atmanirbhar Bharat, the NCMM aims to develop a resilient, domestic mineral value chain.

Objective of NCMM

Ensure self-reliance in the supply of critical minerals vital for:
- High-tech manufacturing (EVs, semiconductors)
- Clean energy technologies (solar panels, wind turbines, batteries)
- National defense and aerospace systems
Minimize supply chain risks by reducing import dependence and promoting domestic capacity.

Comprehensive Scope

Entire Lifecycle Coverage:
- Exploration, Mining, Beneficiation, Processing, Recycling, and Recovery from end-of-life products.
- Expansion to offshore mineral resources and deep-sea mining potential.

Key Strategies

Whole-of-Government Approach: Synergized coordination between Ministries, PSUs, Private Sector, Research Bodies, and State Governments.
Fast-Track Clearances: Single-window approval mechanisms to speed up critical mineral projects.
Mineral Stockpiling: Strategic reserves to mitigate future disruptions and price volatility.

Infrastructure Development

Establish Critical Mineral Processing Parks with shared facilities for refining, alloying, and component manufacturing.
Promote urban mining and recycling through sustainable recovery methods.
Launch of Centre of Excellence for Critical Minerals to support R&D.
Incentives & Innovation Promotion
Financial incentives for private industries to establish processing units in India.
Expand PRISM (Promoting Innovations in Individuals, Startups and MSMEs):
- Fund startups and MSMEs working on critical mineral technologies.
Support academic-industry collaboration and international technology transfers.

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India’s Strategic Engagement in Critical Minerals Clubs