Answer:

Introduction:

Establishing a resilient and indigenous supply chain for critical minerals is paramount for India’s clean energy future. Critical minerals such as cobalt, lithium, nickel, and rare earth elements are essential for manufacturing clean energy technologies like solar panels, wind turbines, and electric vehicles. India’s reliance on imports for clean energy equipment, including a significant percentage of its solar photovoltaic modules, underscores the urgency of developing domestic capabilities in mineral extraction, processing, and recycling​​.

Body:

Why It’s Crucial

• Energy Security and Economic Growth: Dependence on imported critical minerals poses a risk to India’s energy security and its ambition for economic growth through the development of clean energy technologies​​.
• Geopolitical Stability: The global supply of critical minerals is often concentrated in geopolitically sensitive regions, making the supply chain vulnerable to disruptions​​.
• Support for Strategic Industries: Beyond clean energy, critical minerals are vital for strategic sectors including defense, space, telecommunications, and high-tech electronics, which are integral to national security​​​​.

Strategies for Ensuring Supply Chain Security

• Strategic Sourcing and Diversification: Khanij Bidesh India Limited (KABIL) has been tasked with coordinating strategic sourcing for critical minerals. It is essential for KABIL to develop capabilities in research, coordination, and partnerships to secure a steady supply of these minerals​​.
• International Partnerships: India should strengthen its bilateral relationships with countries rich in critical minerals and become part of global consortia like the Mineral Security Partnership (MSP) to ensure diversified and secure supplies​​.
• Domestic Exploration and Production: Enhancing domestic exploration and production capabilities is vital. The Indian government plans to undertake exploration projects and has identified potential lithium deposits in Jammu & Kashmir. However, reaching commercial production levels will take time​​.
• Development of Processing and Recycling Capabilities: To reduce dependency on imports and tackle price volatility, India must invest in processing and refining industries, similar to the South Korean model, which has significantly lowered manufacturing costs​​.
• Innovation and Research: Establishing a National Institute or Center of Excellence on critical minerals can drive innovation in mining technologies and processing methods, ensuring more efficient and sustainable extraction of critical minerals​​.
• Policy and Regulatory Framework: The Indian government should continue to support the critical minerals sector through favorable policies and incentive schemes, fostering an entire value chain from exploration to end-use application​​.

Conclusion:

Securing a resilient supply chain for critical minerals is imperative for India’s transition to clean energy and achieving its decarbonization goals. By implementing these strategies, India can enhance its energy security, support its strategic industries, and position itself as a leader in the clean energy revolution.

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