Published: 11th Jul, 2022
Context
India and Australia Monday decided to strengthen their partnership in the field of projects and supply chains for critical minerals.
- Australia will commit $5.8 million to the three-year India-Australia Critical Minerals Investment Partnership.
About
What are critical minerals?
- Critical minerals are elements that are the building blocks of essential modern-day technologies, and are at risk of supply chain disruptions.
- These minerals are now used everywhere from making mobile phones, computers to batteries, electric vehicles and green technologies like solar panels and wind turbines.
- Based on their individual needs and strategic considerations, different countries create their own lists.
- However, such lists mostly include graphite, lithium and cobalt, which are used for making EV batteries; rare earths that are used for making magnets and silicon which is a key mineral for making computer chips and solar panels.
- Aerospace, communications and defence industries also rely on several such minerals as they are used in manufacturing fighter jets, drones, radio sets and other critical equipment.
Why is this resource critical?
- As countries around the world scale up their transition towards clean energy and digital economy, these critical resources are key to the ecosystem that fuels this change.
- Any supply shock can severely imperil the economy and strategic autonomy of a country over-dependent on others to procure critical minerals.
- They are critical as the world is fast shifting from a fossil fuel-intensive to a mineral-intensive energy system.
Steps taken by India:
- India has set up KABIL or the KhanijBidesh India Limited, a joint venture of three public sector companies, to “ensure a consistent supply of critical and strategic minerals to the Indian domestic market”.
- While KABIL would ensure mineral security of the nation, it would also help in realizing the overall objective of import substitution.
- Australia’s Critical Minerals Facilitation Office (CMFO) and KABIL had recently signed an MoU aimed at ensuring reliable supply of critical minerals to India.
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KABIL
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