Can Critical Minerals Help India Reach Its Net Zero Emissions Goal?

March 7, 2024

Context:

This editorial is based on the news “The biggest roadblock to India’s net-zero goal” which was published in the Indian Express. Critical Minerals are significant in achieving the Net-zero goal of India.

Relevancy for Prelims: Clean Energy Share In India, Critical Mineral Supplies Vital To Clean Energy Shift, Renewable Energy Intermittency, and India’s Budget And The Move Towards Net-Zero.

Relevancy for Mains: Conservation, Environmental Pollution and Degradation.

Rare Earth Minerals in india

They constitute a specific category within critical minerals.
The 17 rare earth elements (REE) include the 15 Lanthanides (atomic numbers 57 — which is Lanthanum — to 71 in the periodic table) plus Scandium (atomic number 21) and Yttrium (39). REEs are classified as light RE elements (LREE) and heavy RE elements (HREE).
Some Rare Earth Minerals available in India: Lanthanum, Cerium, Neodymium, Praseodymium and Samarium, etc.

About Critical Minerals

Definition: No universal definition as countries identify critical minerals based on their own criteria.
Example- US has identified 50 minerals while Japan has identified 31.
India and Critical Minerals: The Indian Government has identified a list of 30 critical minerals (excluding rare earths) in July 2023.
- The Amendments to mining laws in November 2023 allowed private sector participation in the auction of 20 blocks of critical minerals/rare earths minerals.
States/UTs in possession of Critical Minerals: Bihar, Gujarat, Jharkhand, Odisha, Tamil Nadu, Uttar Pradesh, Chhattisgarh, and Jammu and Kashmir.

Critical Minerals

Need For the Critical Minerals

Importance Beyond Decarbonisation:
- Critical minerals essential for fertilisers, construction, magnets, transport, defence, consumer electronics, etc.
- Clean energy technologies like solar PV plants, wind farms, and electric vehicles require more minerals than fossil fuel counterparts.
The International Energy Agency (IEA) estimates that in general, mineral demand for clean energy technologies would rise by at least four times by 2040 to meet the climate goals.

Issues

Global Concentration of Resources:
- Majority of critical minerals concentrated in a few countries.
  - Australia has 55 per cent of lithium reserves, China has 60 percent of the rare earths, Democratic Republic of Congo (DRC) has 75 percent of cobalt, Indonesia has 35 percent of nickel, Chile has 30 percent of copper reserves.
China Factor:

- Monopoly in processing of minerals: China monopolises processing capacity for critical minerals like nickel, lithium, cobalt, and rare earths.
- Example- Mountain Pass Mine, a US-based rare earth mining company, exports a significant portion of its production to China due to the lack of domestic processing capacity. The reliance on Chinese processing raises supply chain vulnerability concerns and highlights dependence on a single country for critical minerals and rare earths minerals.
- Settle Political Scores: China, incidentally, has been using its monopoly position on rare earths to settle political scores with countries like the US and Japan by restricting their exports and also the related technology.
- Investments with other countries: Chinese companies have made investments in Australia, Chile, Indonesia and the DRC, among others, to source those minerals which it is not endowed with sufficiently.

Government Initiatives

Minerals Security Partnership (MSP):
- It is a US-led Minerals Security Partnership (MSP). India is also a member of MSP.
  - The aim of the MSP is to bolster the critical minerals supply chain.
  - It includes countries like Australia, Canada, Sweden and Norway, which have deposits of critical minerals, and also countries like Japan and South Korea which have access to processing technology.
  - MSP does not include countries like Chile, DRC, Indonesia etc. (which are rich in certain critical minerals), raising concerns about its effectiveness.
India’s Decarbonisation Plans:

- India aims for 500 GW non-fossil fuel power capacity by 2030 and net-zero by 2070.
  - As of now, India is completely dependent on imports for most of the critical minerals. India has signed an agreement with Australia to jointly explore for lithium and cobalt assets in Australia.

Challenges

Lack of access to critical minerals poses a significant roadblock to India’s decarbonization goals.
Need for processing, manufacturing, and technology access; gestation period estimated at 15 years or more.

Conclusion

There is a big fear that lack of access to critical minerals may be the biggest roadblock to India’s march towards decarbonisation.

Also Read: UN Climate Summit 2023 or COP28

Prelims PYQ (2020):

Which one of the following statements best describes the term ‘Social Cost of Carbon’? It is a measure, in monetary value, of the

(a) long-term damage done by a tonne of CO2 emissions in a given year.

(b) requirement of fossil fuels for a country to provide goods and services to its citizens, based on the burning of those fuels.

(d) contribution of an individual person to the carbon footprint on the planet Earth.

Ans: (a)

Mains Question: Why is it crucial for India to establish a resilient and indigenous supply chain for critical minerals essential for clean energy technologies? Suggest some strategies for India to ensure the security of its supply of strategic minerals. (10 marks, 150 words)

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