Critical Minerals in India: Overview & Status

April 5, 2024 1410 0

Introduction

Critical minerals refer to minerals that are essential for the economy and national security due to their widespread use in various industries such as electronics, defense, energy, and healthcare, among others. India, like many other countries, relies on critical minerals to support its industrial and technological advancements. These minerals are crucial for the manufacturing of advanced technologies, infrastructure development, and strategic defense capabilities.

Status of Critical Minerals in India

  • Dependency on Imported Minerals: India is totally import-dependent for seven out of 12 identified minerals and does not have any declared resources for them, except light rare Earth (found along with monazite sands) and beryllium
  • Critical Minerals: In  2023 Government released a list of 30 critical minerals for India.  
    • Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE,Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium,Zirconium, Selenium and Cadmium.
  • Applications: Electric Vehicles, aerospace, Defence, laptops, medical imaging, nuclear energy and smartphones, etc.
  • China is currently a leading global supplier for 6 out of the 12 mineral resources identified as critical for India by 2030
  • Establishment of Khanij Bidesh India Ltd. (KABIL): 
    • Joint Venture Company: KABIL has been incorporated with the equity contribution from three Central Public Sector Enterprises namely, National Aluminium Company Ltd, Hindustan Copper Ltd and Mineral Exploration Company Ltd.
    • Objective: To identify and acquire overseas mineral assets of critical & strategic nature such as Lithium, Cobalt & others so as to ensure supply side assurance. 
      • KABIL has engagements with countries like Argentina, Australia etc. to acquire critical & strategic minerals assets.
  • Recently, The government has approved amendments to the Mines and Minerals (Development And Regulation) Act allowing commercial mining of lithium and a few other minerals.
District Mineral foundation [UPSC 2016]

  • Don’t work for  promotion of mineral exploration activities in mineral rich districts, rather it works for the benefit of the people and areas affected by mining related operations. 
  • Contributions by Miners: 10% of royalty in respect of mining leases granted on or after 12 January, 2015; and 30% of royalty in respect of mining leases granted before 12 January, 2015.
  • Usage of Funds: Utilized under Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) for the welfare of areas and people affected by mining related operations. 60% : High priority areas such as Education, Health etc.;  40% : Physical infrastructure
  • In respect of villages affected by mining situated within the Schedule V and Schedule VI areas, approval of the Gram Sabha shall be required for the usage of funds and identification of beneficiaries.
  • It does not authorize states to issue a license for mineral exploration. 

 

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Lithium

  • Properties: Lithium is the lightest and softest metal in the world. It is a non-ferrous metal.
  • Uses: This metal is one of the critical components for batteries that power electric vehicles and numerous gadgets like smartphones and laptops.
  • Import Dependence: India meets about 70% of its lithium requirement via imports, however, earlier this year, India discovered 5.9 million tonnes worth of lithium reserves in Jammu and Kashmir
  • Spread Around the World: At present, 47% of the world’s lithium is produced in Australia, 30% in Chile, and 15% in China.

Conclusion

  • India’s dependency on critical minerals highlights the importance of securing a stable supply chain for economic growth and national security
  • Initiatives such as the establishment of Khanij Bidesh India Ltd. (KABIL) underscores the country’s efforts to acquire overseas mineral assets and reduce reliance on imports. 
  • With a focus on key minerals like lithium, cobalt, and others, India aims to ensure a steady availability of resources crucial for various industries including electric vehicles, aerospace, defense, and technology. 
  • These endeavors are essential for fostering self-sufficiency, promoting innovation, and safeguarding strategic interests in the global market.
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