{"id":147221,"date":"2024-12-16T19:58:14","date_gmt":"2024-12-16T14:28:14","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=147221"},"modified":"2025-02-13T15:58:28","modified_gmt":"2025-02-13T10:28:28","slug":"critical-minerals-in-india","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/critical-minerals-in-india","title":{"rendered":"Critical Minerals and India&#8217;s Mineral Diplomacy Strategy"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">As India seeks to <\/span><b>expand its manufacturing and technological capability, critical minerals<\/b><span style=\"font-weight: 400;\"> will become vital to fulfil this ambition.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To address <\/span><b>India\u2019s mineral security challenge<\/b><span style=\"font-weight: 400;\">, which is aimed at reducing its strategic vulnerability, New Delhi has started an attempt to engage in<\/span><b> mineral diplomacy.<\/b><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>About Critical Minerals<\/b><\/span><\/h2>\n<ul>\n<li><b>Definition: <\/b><span style=\"font-weight: 400;\">These are the minerals which are<\/span><b> essential for economic development<\/b><span style=\"font-weight: 400;\"> and national security but the <\/span><b>scarcity and limitation of its geographical availability<\/b><span style=\"font-weight: 400;\"> leading to supply chain vulnerability and disruption constitute its criticality.<\/span><\/li>\n<li><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-147144 alignright\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/161-67601da2026d7.webp\" alt=\"Critical Minerals\" width=\"603\" height=\"416\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/161-67601da2026d7.webp 1088w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/161-67601da2026d7-300x207.webp 300w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/161-67601da2026d7-1024x706.webp 1024w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/161-67601da2026d7-768x529.webp 768w\" sizes=\"(max-width: 603px) 100vw, 603px\" \/><b>Major Critical Minerals:<\/b><span style=\"font-weight: 400;\"> The <\/span><b>Report of the Committee on Identification of Critical Minerals <\/b><span style=\"font-weight: 400;\">constituted by Ministry of Mines has identified <\/span><b>30 critical minerals<\/b><span style=\"font-weight: 400;\">,<\/span>\n<ul>\n<li><b>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.<\/b><\/li>\n<\/ul>\n<\/li>\n<li><b>Top Producers: <\/b><span style=\"font-weight: 400;\">According to the<\/span><b> International Energy Agency, <\/b><span style=\"font-weight: 400;\">the major producers of critical minerals are<\/span><b> China, Congo, Chile, Indonesia, South Africa, and Australia.\u00a0<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">China has global dominance in terms of processing.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Course<\/a><\/span><\/p>\n<ul>\n<li><b>Usage:\u00a0<\/b>\n<ul>\n<li><b>Advanced Electronics: <\/b><span style=\"font-weight: 400;\">They are critical for making<\/span><b> semiconductors and high-end electronics manufacturing.<\/b><\/li>\n<li><b>Clean Energy Technology: <\/b><span style=\"font-weight: 400;\">These minerals are an essential component in many clean energy technologies,<\/span><b> from wind turbines and solar panels to electric vehicles.<\/b><\/li>\n<li><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-147145 alignright\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/162-67601da131f6f.webp\" alt=\"Critical Minerals\" width=\"503\" height=\"450\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/162-67601da131f6f.webp 763w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/162-67601da131f6f-300x268.webp 300w\" sizes=\"(max-width: 503px) 100vw, 503px\" \/><b>Transport and Communications: <\/b><span style=\"font-weight: 400;\">They are also used in manufacturing<\/span><b> fighter jets, drones, and radio sets, Aircrafts <\/b><span style=\"font-weight: 400;\">and mainly power the<\/span><b> transition to Electric Vehicles<\/b><\/li>\n<li><b>Diverse Sectors:<\/b><span style=\"font-weight: 400;\"> To manufacture advanced technologies in diverse sectors such as <\/span><b>mobile phones, tablets, electric vehicles, solar panels, wind turbines<\/b><span style=\"font-weight: 400;\">, fibre optic cables, and defence and medical applications.<\/span><\/li>\n<li><b>Battery and Storage Technology:<\/b><span style=\"font-weight: 400;\"> These minerals are critical to develop the storage technology in terms of advancements in battery technology like Lithium-Ion.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Components of Value Chain:<\/b>\n<ul>\n<li><b>Geoscience and Exploration<\/b><\/li>\n<li><b>Upstream: <\/b><span style=\"font-weight: 400;\">Mining and Extraction<\/span><\/li>\n<li><b>Midstream:<\/b><span style=\"font-weight: 400;\"> Processing, Refining and Metallurgy<\/span><\/li>\n<li><b>Downstream: <\/b><span style=\"font-weight: 400;\">Component Manufacturing and Clean Digital Advanced Technology production\u00a0<\/span>\n<ul>\n<li><b>Example: Zero-Emission Vehicles (<\/b><span style=\"font-weight: 400;\">ZEV)<\/span><span style=\"font-weight: 400;\"> Manufacturing, Semiconductors, chips etc.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Material Recovery and Recycling<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Importance of Critical Minerals<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Key Role in Green Energy Transition<\/b><span style=\"font-weight: 400;\">: Essential for technologies like batteries (lithium, cobalt), solar panels (silicon, silver), and wind turbines (rare earth elements).<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">As per the International Energy Agency (IEA), lithium demand rose by 30% in 2023, while demand for nickel, cobalt, and graphite grew 8\u201315%.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Global Climate Goals<\/b><span style=\"font-weight: 400;\">: Critical to achieving the net-zero emissions target and limiting global warming to 1.5\u00b0C.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Projections<\/b><span style=\"font-weight: 400;\">: By 2040, demand is expected to increase:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Lithium (8x), graphite (4x), cobalt, nickel, and rare earths (2x).<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Economic and Strategic Importance<\/b><span style=\"font-weight: 400;\">: Aggregate global value of critical minerals pegged at $325 billion in 2023.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Crucial for manufacturing defense equipment, EVs, and semiconductors.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Reserves of Critical Minerals in India<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Graphite<\/b><span style=\"font-weight: 400;\">: India has <\/span><b>9 million tonnes<\/b><span style=\"font-weight: 400;\"> of reserves, with production reported from 12 mines.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Tamil Nadu <\/b><span style=\"font-weight: 400;\">was the leading producer of graphite in India in 2021-22, accounting for 63% of the total output. Odisha was the second leading producer.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Arunachal Pradesh <\/b><span style=\"font-weight: 400;\">has the highest graphite reserves in India, with 43% of the country&#8217;s total resources.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lithium<\/b><span style=\"font-weight: 400;\">: India&#8217;s <\/span><b>first lithium reserves were discovered in Jammu and Kashmir in 1999<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The Geological Survey of India (GSI) also discovered lithium reserves in <\/span><b>Rajasthan&#8217;s Degana<\/b><span style=\"font-weight: 400;\">, which are believed to be larger than the reserves in Jammu and Kashmir.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ilmenite (Titanium)<\/b><span style=\"font-weight: 400;\">: India holds 11% of global deposits, yet imports $1 billion worth of titanium dioxide annually.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Odisha <\/b><span style=\"font-weight: 400;\">is the leading producer of ilmenite in India, contributing 60% of the country&#8217;s total production in 2021-22.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Kerala and Tamil Nadu<\/b><span style=\"font-weight: 400;\"> are the second and third largest producers, respectively.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Phosphorous<\/b><span style=\"font-weight: 400;\">: Rajasthan and Madhya Pradesh are the two states in India that produce the most phosphate rocks:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Rajasthan: <\/b><span style=\"font-weight: 400;\">31% of India&#8217;s total rock phosphate reserves and resources<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Madhya Pradesh: <\/b><span style=\"font-weight: 400;\">19% of India&#8217;s total rock phosphate reserves and resources\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Potash<\/b><span style=\"font-weight: 400;\">: <\/span><b>Rajasthan <\/b><span style=\"font-weight: 400;\">is the highest producer of potash in India, contributing <\/span><b>91% of the country&#8217;s total potash resources.\u00a0<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The state has an estimated <\/span><b>2.4 billion tons of potash reserves,<\/b><span style=\"font-weight: 400;\"> which is about 90% of India&#8217;s total estimated reserves.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Other Major reserves are located in <\/span><b>Madhya Pradesh (Panna district), and Uttar Pradesh (Sonbhadra and Chitrakoot districts)<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Rare Earth Elements (REE)<\/b><span style=\"font-weight: 400;\">: India has an estimated<\/span><b> 11.93 million tonnes of monazite from beach sand <\/b><span style=\"font-weight: 400;\">containing 55\u201365% rare earth oxides.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Andhra Pradesh <\/b><span style=\"font-weight: 400;\">is the state in India with the highest resources of rare earth elements (REEs), with 3.69 million tonnes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Other states with REE resources include: <\/span><b>Kerala, Tamil Nadu, Odisha<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Platinum Group Elements (PGE)<\/b><span style=\"font-weight: 400;\">: About 15.7 tonnes of PGE are located in <\/span><b>Odisha (Nilgiri, Boula-Nuasahi, Sukinda) and Karnataka (Hanumalpura).<\/b><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+CSE+Books\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC CSE Books From PW Store<\/span><\/a><\/span><\/p>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.5971%;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\">\n<h2><span style=\"font-size: 18pt;\"><b>About Rare Earth (RE)<\/b><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-147146 alignright\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/163-67601da04943c.webp\" alt=\"Critical Minerals\" width=\"350\" height=\"413\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/163-67601da04943c.webp 569w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/163-67601da04943c-254x300.webp 254w\" sizes=\"(max-width: 350px) 100vw, 350px\" \/><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Rare Earth (RE) are an <\/span><b>essential part of many high-tech devices and comprises 17 elements <\/b><span style=\"font-weight: 400;\">which are classified as<\/span><b> light RE elements (LREE) and heavy RE elements (HREE)<\/b><span style=\"font-weight: 400;\"> including,\u00a0<\/span>\n<ul>\n<li><b>The 15 Lanthanides: Atomic numbers 57 ( Lanthanum)\u00a0 to 71 i<\/b><span style=\"font-weight: 400;\">n the periodic table<\/span><\/li>\n<li><b>Scandium (atomic number 21)\u00a0<\/b><\/li>\n<li><b>Yttrium<\/b><span style=\"font-weight: 400;\"> (39).\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Application In: <\/b><span style=\"font-weight: 400;\">Computer hard drives, cellular telephones, flat-screen monitors and televisions, and electric and hybrid vehicles.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Availability:<\/b><span style=\"font-weight: 400;\"> India has the<\/span><b> world\u2019s fifth-largest reserves of rare earth elements<\/b><span style=\"font-weight: 400;\">, nearly twice as much as Australia.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>LREEs available in India:<\/b><span style=\"font-weight: 400;\"> Lanthanum, Cerium, Neodymium, Praseodymium and Samarium, etc.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>HREEs not Available in India:\u00a0 <\/b><span style=\"font-weight: 400;\">Dysprosium, Terbium, and Europium are not available in Indian deposits in extractable quantities.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<h2><span style=\"font-size: 18pt;\"><b>Import Dependency of Critical Minerals<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lithium<\/b><span style=\"font-weight: 400;\">: India is 100% import-dependent for lithium, primarily sourced from Chile, Russia, and China.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cobalt<\/b><span style=\"font-weight: 400;\">: Completely imported, with key sources being China, Belgium, and Japan.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Nickel<\/b><span style=\"font-weight: 400;\">: 100% imported from countries such as Sweden, China, and Indonesia.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Vanadium<\/b><span style=\"font-weight: 400;\">: Fully imported, mainly from Kuwait, Germany, and South Africa.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Germanium<\/b><span style=\"font-weight: 400;\">: Entirely imported from China, South Africa, and France.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Rhenium<\/b><span style=\"font-weight: 400;\">: India relies on imports from Russia, the UK, and China.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Beryllium and Tantalum<\/b><span style=\"font-weight: 400;\">: Fully imported, with no domestic reserves reported.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Silicon<\/b><span style=\"font-weight: 400;\">: India produces limited quantities and relies heavily on imports from China, Malaysia, and Norway.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Government\u00a0 Initiatives for Production of Critical Minerals<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>National Critical Minerals Mission (2024): <\/b><span style=\"font-weight: 400;\">The National Critical Minerals Mission, <\/span><b>announced in Union Budget 2024-25<\/b><span style=\"font-weight: 400;\">, is aimed at reinforcing India\u2019s Critical Mineral value chain across all stages \u2013 from exploration and mining to beneficiation, processing, and recovery from end-of-life products.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The mission\u2019s goal is to<\/span><b> ensure self-sufficiency in fulfilling the industrial demand<\/b><span style=\"font-weight: 400;\">s for critical minerals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The mission focuses on boosting domestic exploration and incentivizing private sector participation.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Amendments to the Mines and Minerals Act (2023)<\/b><span style=\"font-weight: 400;\">: The government has amended the <\/span><b>Mines and Minerals (Development and Regulation) Act, 1957 <\/b><span style=\"font-weight: 400;\">to allow the auction of critical mineral blocks. The f<\/span><b>i<\/b><span style=\"font-weight: 400;\">rst auction was held in November 2023 for 20 blocks.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">These amendments aim to <\/span><b>enhance private sector involvement<\/b><span style=\"font-weight: 400;\"> in exploration and mining.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The streamlined auction process and introduction of <\/span><b>Exploration Licenses <\/b><span style=\"font-weight: 400;\">aim to facilitate tapping into<\/span><b> deep-seated and untapped mineral reserves<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strengthening Refining and Processing Capabilities<\/b><span style=\"font-weight: 400;\">: India has initiated efforts to <\/span><b>build domestic refining and processing infrastructure<\/b><span style=\"font-weight: 400;\"> to reduce its reliance on imports for downstream processes.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">During<\/span><b> 2024, <\/b><span style=\"font-weight: 400;\">under the <\/span><b>R &#038; D Component of Science and Technology Programme of the Ministry of Mines<\/b><span style=\"font-weight: 400;\">, <\/span><b>10 R &#038; D Projects<\/b><span style=\"font-weight: 400;\"> related to <\/span><b>extraction, recovery and recycling<\/b><span style=\"font-weight: 400;\"> of critical minerals have been approved for taking up through various Indian Institutes and research laboratories.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>India&#8217;s Mineral Diplomacy Strategy<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">India is<\/span><b> actively involved in building partnerships with resource rich countries<\/b><span style=\"font-weight: 400;\"> to secure critical minerals.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Bilateral Partnerships<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Australia<\/b><span style=\"font-weight: 400;\">: In <\/span><b>March 2022, KABIL signed a Memorandum of Understanding<\/b><span style=\"font-weight: 400;\"> with Australia for a critical mineral investment partnership and established the Australia-India Critical Minerals Research Hub.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">These initiatives focus on <\/span><b>lithium and cobalt projects <\/b><span style=\"font-weight: 400;\">and research on sustainable mining.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Latin America (Argentina, Chile, Bolivia)<\/b><span style=\"font-weight: 400;\">: India signed a<\/span><b> $24 million lithium exploration pact <\/b><span style=\"font-weight: 400;\">with a state-owned enterprise in Argentina in January 2024 for five lithium brine blocks.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>KABIL<\/b><span style=\"font-weight: 400;\"> is actively working on securing mineral supplies by facilitating the acquisition of <\/span><b>assets in Bolivia and Chile<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>United States<\/b><span style=\"font-weight: 400;\">: India is negotiating a pact to enhance supply chains for<\/span><b> cobalt, lithium, nickel, and rare earth elements <\/b><span style=\"font-weight: 400;\">under the U.S.-led Mineral Security Partnership (MSP).<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-textbooks?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Textbooks\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC NCERT Textbooks From PW Store<\/span><\/a><\/span><\/p>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.6975%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\">\n<h2><span style=\"font-size: 18pt; color: #000000;\"><b>About Minerals Security Partnership (MSP)<\/b><\/span><\/h2>\n<ul>\n<li><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">It is a <\/span><b>global initiative to bolster critical mineral supply chains<\/b><span style=\"font-weight: 400;\"> also known as the <\/span><b>critical minerals alliance.<\/b><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Establishment: <\/b><span style=\"font-weight: 400;\">The Minerals Security Partnership (MSP) was <\/span><b>officially announced at the annual Prospectors and Developers Association of Canada (PDAC) convention i<\/b><span style=\"font-weight: 400;\">n Toronto, Canada in June 2022.<\/span><\/span>\n<ul>\n<li aria-level=\"2\"><span style=\"color: #000000;\"><b>It is the largest mining event in the world.\u00a0<\/b><\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Founding Members: <\/b><span style=\"font-weight: 400;\">The United States, Australia, Canada, Finland, France, Germany, Japan, the Republic of Korea, Sweden, the United Kingdom, and the European Commission<\/span><\/span>\n<ul>\n<li><span style=\"color: #000000;\"><b>India joined the initiative in June of 2023\u00a0\u00a0<\/b><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Aim: <\/b><span style=\"font-weight: 400;\">To accelerate the <\/span><b>development of sustainable critical energy minerals supply chains via a public-private partnership<\/b><span style=\"font-weight: 400;\"> to facilitate targeted financial and diplomatic support for strategic projects along the value chain.\u00a0<\/span><\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Canada and Brazil<\/b><span style=\"font-weight: 400;\">: India is exploring cooperation in mining and critical mineral supply chains through bilateral engagements.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Collaboration with Central Asia:<\/b><span style=\"font-weight: 400;\"> In <\/span><b>November 2024, India and Kazakhstan<\/b><span style=\"font-weight: 400;\"> formed a joint venture called <\/span><b>IREUK Titanium Limited <\/b><span style=\"font-weight: 400;\">to produce<\/span><b> titanium slag<\/b><span style=\"font-weight: 400;\"> in India.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">India has proposed the establishment of an<\/span><b> India-Central Asia Rare Earths Forum<\/b><span style=\"font-weight: 400;\"> to leverage the region&#8217;s rich resource base.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Multilateral Partnerships<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Mineral Security Partnership (MSP)<\/b><span style=\"font-weight: 400;\">: India joined as the <\/span><b>14th member in June 2023 <\/b><span style=\"font-weight: 400;\">to promote resilient and responsible critical mineral supply chains globally.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Quad and Indo-Pacific Economic Framework (IPEF)<\/b><span style=\"font-weight: 400;\">: India participates in these frameworks to strengthen clean energy technologies and critical mineral supply chain resilience.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>G20 and G7<\/b><span style=\"font-weight: 400;\">: India has <\/span><b>actively advocated for principles ensuring equitable and resilient supply chains<\/b><span style=\"font-weight: 400;\"> for critical minerals through these platforms.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.7982%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\">\n<h2><span style=\"font-size: 18pt; color: #000000;\"><b>About KABIL<\/b><\/span><\/h2>\n<ul>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">KABIL stands for <\/span><b>Khanij Bidesh India Limited<\/b><span style=\"font-weight: 400;\">, a<\/span><b> joint venture company<\/b><span style=\"font-weight: 400;\"> that was formed to ensure a reliable <\/span><b>supply of critical minerals to India.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">KABIL was incorporated in<\/span><b> 2019 under the Companies Act of 2013.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">It is a joint venture between <\/span><b>three government enterprises<\/b><span style=\"font-weight: 400;\">:<\/span><\/span>\n<ul>\n<li><span style=\"color: #000000;\"><b>National Aluminium Company Ltd. (NALCO), Hindustan Copper Limited (HCL), and Mineral Exploration &#038; Consultancy Limited (MECL).<\/b><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><b>International Energy Agency: <\/b><span style=\"font-weight: 400;\">India\u2019s Ministry of Mines signed a <\/span><b>Memorandum of Understanding with the International Energy Agency <\/b><span style=\"font-weight: 400;\">to streamline policies, regulations, and investment strategies for the critical minerals sector in line with global best practices.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Engagement with the Global South<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India has initiated partnerships with<\/span><b> African nations, including Zambia, Congo, and Namibia<\/b><span style=\"font-weight: 400;\">, for sourcing minerals like copper and cobalt.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">These collaborations emphasize ethical sourcing, fair practices, and diversifying mineral supply chains.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Challenges in India\u2019s Mineral Diplomacy<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Heavy Import Dependence<\/b><span style=\"font-weight: 400;\">: India is almost entirely dependent on imports for critical minerals like lithium, cobalt, and nickel.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">In <\/span><b>FY 2023-24, India spent over \u20b934,000 crores<\/b><span style=\"font-weight: 400;\"> on importing lithium, cobalt, nickel, and copper, with<\/span><b> 70\u201380% of lithium imports coming from China.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India procured 50,000 tonnes of amorphous graphite and 5,300 tonnes of nickel oxide from China between 2017 and 2023.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>China\u2019s Dominance in Supply Chains<\/b><span style=\"font-weight: 400;\">: China controls <\/span><b>approximately 60% of global production and 85% of processing capacity for critical minerals<\/b><span style=\"font-weight: 400;\">, including rare earths, lithium, and cobalt.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">China processes <\/span><b>59% of lithium and 73% of cobalt globally, <\/b><span style=\"font-weight: 400;\">dominating the midstream and downstream value chains.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">In 2023, China imposed <\/span><b>export restrictions on graphite and other minerals<\/b><span style=\"font-weight: 400;\">, disrupting global supply chains.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lack of Domestic Processing Capabilities<\/b><span style=\"font-weight: 400;\">: India lacks the infrastructure for refining and processing critical minerals, which are essential for downstream industries.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Most <\/span><b>mineral blocks auctioned in India remain unsold due to insufficient domestic processing technologies.<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Technological and R&#038;D Deficits<\/b><span style=\"font-weight: 400;\">: There is <\/span><b>limited investment <\/b><span style=\"font-weight: 400;\">in research and development for extraction and refining technologies.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Deep-seated minerals like cobalt and nickel remain unexplored<\/b><span style=\"font-weight: 400;\"> in India due to the absence of advanced mining techniques.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Geopolitical Vulnerabilities<\/b><span style=\"font-weight: 400;\">: Dependence on a few countries for critical minerals exposes India to supply disruptions due to geopolitical tensions.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">During the 2010 <\/span><b>China-Japan dispute,<\/b><span style=\"font-weight: 400;\"> China imposed export bans on rare earths, severely impacting Japan\u2019s tech industry.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The <\/span><b>ongoing U.S.-China rivalry<\/b><span style=\"font-weight: 400;\"> has seen tit-for-tat restrictions on critical mineral exports, highlighting the risks of concentrated supply chains.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Insufficient Private Sector Participation<\/b><span style=\"font-weight: 400;\">: The private sector&#8217;s involvement in exploration and processing is limited due to unclear policies and high risks.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Despite amendments to the <\/span><b>Mines and Minerals Act in 2023<\/b><span style=\"font-weight: 400;\">, auctions for critical mineral blocks <\/span><b>failed to attract sufficient private sector interest.<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Environmental and Ethical Concerns in Sourcing<\/b><span style=\"font-weight: 400;\">: Global mining practices often face<\/span><b> scrutiny for human rights violations and environmental degradation<\/b><span style=\"font-weight: 400;\">.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Allegations<\/span><b> against Chinese firms<\/b><span style=\"font-weight: 400;\"> in the <\/span><b>Democratic Republic of Congo<\/b><span style=\"font-weight: 400;\"> include child labor and forced evictions in cobalt mining operations.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc\/pw-only-ias?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Classes<\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Way forward<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Policy Reforms and Incentives<\/b><span style=\"font-weight: 400;\">: India needs to accelerate <\/span><b>domestic mining and processing capabilities<\/b><span style=\"font-weight: 400;\"> through viability gap funding and increased R&#038;D investments.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Policies should provide clear incentives for <\/span><b>private sector engagement<\/b><span style=\"font-weight: 400;\"> across the critical mineral value chain.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Diversification of Supply Sources<\/b><span style=\"font-weight: 400;\">: India must <\/span><b>reduce its reliance on China<\/b><span style=\"font-weight: 400;\"> by strengthening partnerships with countries in <\/span><b>Latin America, Africa, and Australia.<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The country should explore <\/span><b>alternative sources for synthetic graphite<\/b><span style=\"font-weight: 400;\">, including Mozambique, Madagascar, and Brazil.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strengthening Multilateral Engagements<\/b><span style=\"font-weight: 400;\">: India should take a <\/span><b>leading role in global dialogues f<\/b><span style=\"font-weight: 400;\">or equitable access to critical minerals through frameworks like MSP and Quad.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Multilateral engagements<\/b><span style=\"font-weight: 400;\"> must focus on building resilient and sustainable supply chains for these vital resources.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Technological and R&#038;D Collaboration<\/b><span style=\"font-weight: 400;\">: India should partner with advanced economies like the <\/span><b>United States and Japan<\/b><span style=\"font-weight: 400;\"> to acquire <\/span><b>cutting-edge refining and recycling technologies<\/b><span style=\"font-weight: 400;\">.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Investments in recycling technologies<\/b><span style=\"font-weight: 400;\"> can help reduce dependency on raw material imports and create a circular economy for critical minerals.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>ESG (environmental, social, and governance) compliance: <\/b><span style=\"font-weight: 400;\">India must ensure<\/span><b> ESG (environmental, social, and governance) compliance in its sourcing practices,<\/b><span style=\"font-weight: 400;\"> especially in partnerships with countries like Congo and South American nations.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Conclusion<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Mineral diplomacy is<\/span><b> essential for India&#8217;s economic development and strategic autonomy<\/b><span style=\"font-weight: 400;\">. Addressing challenges related to <\/span><b>private sector participation, diplomatic capacity, and sustainable partnerships<\/b><span style=\"font-weight: 400;\"> is crucial for strengthening India&#8217;s mineral security efforts. With a comprehensive and forward-looking approach, India can achieve<\/span><b> long-term self-reliance in critical minerals.<\/b><\/p>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.6375%;\">\n<tbody>\n<tr>\n<td style=\"width: 111.19%; text-align: center;\" colspan=\"2\"><span style=\"font-size: 18pt;\"><b>Also Read<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Daily Editorials<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/daily-current-affairs\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Daily Current Affairs<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/quiz\/\" target=\"_blank\" rel=\"noopener\"><b>Daily Current Affairs Quiz<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/mains-answer-writing\/\" target=\"_blank\" rel=\"noopener\"><b>Daily Main Answer Writing<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-previous-year-papers?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Previous+Year+Papers\" target=\"_blank\" rel=\"noopener\"><b>Check Out Previous Years Papers From PW Store<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/upsc-test-series-courses\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Test Series<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-textbooks?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Textbooks\" target=\"_blank\" rel=\"noopener\"><b>Check Out UPSC NCERT Textbooks From PW Store<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-modules?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Modules\" target=\"_blank\" rel=\"noopener\"><b>Check Out UPSC Modules From PW Store<\/b><\/a><b>\u00a0<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>As India seeks to expand its manufacturing and technological capability, critical minerals will become vital to fulfil this ambition.<\/p>\n","protected":false},"author":11,"featured_media":147154,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[],"paper-wise":[2089],"subject":[2100],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/147221"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/current-affairs"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=147221"}],"version-history":[{"count":2,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/147221\/revisions"}],"predecessor-version":[{"id":147225,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/147221\/revisions\/147225"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media\/147154"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=147221"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=147221"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=147221"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=147221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}