India is on a quest to secure critical minerals, which are essential for various high-tech industries, renewable energy technologies, and advanced manufacturing. These minerals, including lithium, cobalt, and rare earth elements, are crucial for making batteries, electric vehicles, smartphones, and other modern gadgets. As global demand for these minerals rises, India aims to reduce its dependency on imports and ensure a steady supply for its growing economy. This hunt involves exploring domestic sources, forging international partnerships, and investing in sustainable mining practices. Securing these minerals is vital for India’s technological advancement and energy security.
Tags: GS-3, Economy- Planning- Mobilization of Resources– Industrial Growth– Industrial Policy
Why in the news?
- In June, the Ministry of Mines launched the fourth tranche of critical minerals auction, offering 21 blocks across 14 states.
- To incentivize exploration, the ministry announced a scheme to reimburse up to Rs 20 crore in exploration expenses for licence holders.
- Licence holders can claim up to Rs 20 crore for exploration activities and may receive additional reimbursements if they hand over a block for mining lease within three years.
What are Critical Minerals?
- Critical minerals are raw materials essential for economic and national security, often used in high-tech industries and renewable energy technologies.
- They are typically rare, difficult to mine and substitute, and often vulnerable to supply chain disruptions due to limited global production and geopolitical factors.
- The growing demand for these minerals, driven by technological advancements and the global transition to green energy, underscores their critical importance.
- Securing a stable supply of critical minerals is a strategic priority for many countries to ensure economic stability and technological progress.
Examples of Critical Minerals:
- Lithium:
- Uses: Lithium-ion batteries for EVs, consumer electronics, and energy storage systems.
- Reserves: Australia and Chile hold the largest reserves of lithium according to the US Geological Survey (USGS).
- Cobalt:
- Uses: Battery production, aerospace components, and high-strength alloys.
- Reserves: The Democratic Republic of Congo (DRC) is the largest global supplier, with almost half of all cobalt reserves.
- Graphite:
- Uses: Batteries, fuel cells, and high-temperature applications.
- Reserves: In 2023, China had the world’s largest reserves of natural graphite, approximately 78 million metric tons.
- Nickel:
- Uses: Stainless steel production and battery manufacturing.
- Reserves: Australia and Indonesia have the largest reserves of nickel.
- Rare Earth Elements (REEs):
- Uses: Manufacturing electronics, magnets, and military applications.
- Reserves: Worldwide reserves are approximately 110 million metric tons, with China holding the largest share (about 44 million metric tons). Other major reserves are found in Vietnam, Russia, and Brazil.
Critical Minerals Reserves in the World & India:
- India’s Situation:
- India does not have reserves of nickel, cobalt, molybdenum, rare earth elements, neodymium, and indium.
- The country’s requirement for copper and silver is higher than its current reserves.
Why Critical Minerals are Important for India?
- Foundation of Modern Technology:
- Critical minerals are essential for modern technology.
- They are used in products ranging from mobile phones and solar panels to electric vehicle batteries and medical applications.
- Energy Transition:
- Critical minerals are vital for renewable energy technologies needed to meet global “Net Zero” commitments.
- These minerals are necessary for building solar panels, semiconductors, wind turbines, and advanced batteries for storage and transportation.
- Futuristic Economy:
- The future global economy will rely on technologies dependent on minerals like lithium, graphite, cobalt, titanium, and rare earth elements.
- These minerals are the building blocks for the green and digital economy.
- Self Reliance:
- Identifying critical minerals will help India plan for their acquisition and preservation, considering the country’s long-term needs.
- This strategy will reduce India’s import dependency, as the country is currently 100% import-dependent for certain elements.
What Factors Impact the Criticality of Minerals?
- Two Main Parameters:
- Economic Importance:
- Assesses how raw materials are distributed across different industrial uses.
- Evaluates the impact on industries when certain minerals are unavailable in the supply chain.
- Supply Risk:
- Examines how global production of raw materials is concentrated in specific countries.
- Considers the governance and environmental practices of supplier countries.
- Look at reliance on imports and trade restrictions in other countries.
- Economic Importance:
What are the Initiatives Taken for Critical Minerals in India?
- Planning Commission:
- In 2011, a report by the Planning Commission (now NITI Aayog) highlighted the need for assured availability of mineral resources for India’s industrial growth.
- Identified 12 strategic minerals: Tin, Cobalt, Lithium, Germanium, Gallium, Indium, Niobium, Beryllium, Tantalum, Tungsten, Bismuth, and Selenium.
- Ministry of Mines:
- Constituted a steering committee in 2011 to review the availability of rare-earth elements (REE) and energy-critical elements.
- Conducted a study titled “Rare Earths and Energy Critical Minerals: A Roadmap and Strategy for India” to review production, consumption, and reserves.
- Council on Energy, Environment and Water (CEEW):
- Conducted a study highlighting the lack of research in India regarding mineral resource security for the manufacturing sector.
- Identified 13 minerals as most critical by 2030: Rhenium, Beryllium, Rare Earths (Heavy), Germanium, Graphite, Tantalum, Zirconium, Chromium, Limestone, Niobium, Rare Earths (Light), Silicon, and Strontium.
- Geological Survey of India (GSI):
- Submitted a strategic plan for enhancing REE exploration in India in collaboration with the Atomic Mineral Division (AMD).
- Emphasised securing rare earth elements for India.
- Centre for Socio and Economic Progress (CSEP):
- Released a working paper in 2023 titled “Assessing the Criticality of Minerals in India”.
- Evaluated the criticality of 43 non-fuel minerals based on economic importance and supply risks.
What is the Mandate of the New Committee on Critical Minerals?
- Mandate:
- The Ministry of Mines constituted a committee to identify critical and strategic minerals.
- Chaired by Dr. Veena Kumari Dermal, Joint Secretary, Ministry of Mines.
- Concluded that the categorization of critical minerals depends on factors such as availability, monopoly on resources, use for frontier technologies/clean energy, substitutability, supply risk, and recycling.
- Criteria for Identifying Critical Minerals:
- Three-Stage Assessment:
- Study of International Strategies: Analysed critical mineral strategies from countries like Australia, USA, Canada, UK, Japan, and South Korea.
- Inter-Ministerial Consultation: Engaged with various ministries (e.g., Ministry of Power, Ministry of New and Renewable Energy, Department of Atomic Energy) to identify sector-specific critical minerals.
- Statistical Analysis: Conducted a detailed statistical exercise to compute factors like substitutability index, minerals cross-cutting index, and import reliance.
- Three-Stage Assessment:
- Outcome:
- Identified a total of 30 minerals as most critical for India.
- Included two minerals specifically critical as fertiliser minerals.
When is Domestic Production likely to Begin?
- Current Status: The commercialization of India’s domestic mineral blocks is still in the early stages of exploration.
- Future Prospects: Significant benefits from domestic production are unlikely to materialise by 2030, as assessed by ICRA.
- Government Initiatives:
- The Indian government is actively promoting exploration activities to accelerate the development of domestic mineral resources.
- Efforts include incentivizing exploration and attracting more miners to participate in mineral extraction projects.
- India is pursuing overseas mineral acquisitions as a strategy to secure critical resources. For instance, a joint venture named Khanij Bidesh India Limited has been established to develop a lithium brine mine in Argentina.
- International Collaboration:
- India has joined the U.S.-led Mineral Security Partnership, which involves major global stakeholders in critical minerals.
- This partnership aims to enhance India’s mineral security by fostering cooperation among significant buyers and sellers of critical minerals worldwide
Conclusion:
India’s focus on clean energy and emissions reduction highlights the critical importance of minerals for electric vehicles and renewable energy systems. They are essential for India’s transition to a greener and more sustainable future, driving growth, competitiveness, and sustainable development.
| UPSC Civil Services Examination Previous Year Question (PYQ) Prelim: Q1.Consider the following minerals: (2020) 1. Bentonite 2. Chromite 3. Kyanite 4. Sillimanite In India, which of the above is/are officially designated as major minerals? a) 1 and 2 only b) 4 only c) 1 and 3 only d) 2, 3 and 4 only Ans: D Q: 2.Recently, there has been a concern over the short supply of a group of elements called ‘rare earth metals’. Why? (2012) 1. China, which is the largest producer of these elements, has imposed some restrictions on their export. 2. Other than China, Australia, Canada and Chile, these elements are not found in any country. 3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements. Which of the statements given above is/are correct? a) 1 only b) 2 and 3 only c) 1 and 3 only d) 1, 2 and 3 Ans: C Mains: Q:1 Discuss the multi-dimensional implications of uneven distribution of mineral oil in the world. (2021) |
Sources: TH
FAQs
Q: What are critical minerals?
- Answer: Critical minerals are essential natural resources that are crucial for manufacturing high-tech devices, renewable energy technologies, and other advanced industrial processes. These include minerals like lithium, cobalt, and rare earth elements.
Q: Why is India hunting for critical minerals?
- Answer: India is hunting for critical minerals to support its growing technology sector, renewable energy projects, and overall industrial development. Securing a steady supply of these minerals is essential for making batteries, electronics, and green technologies.
Q: Where does India find these critical minerals?
- Answer: India is looking both within its borders and internationally. Domestically, India is exploring areas that may have untapped mineral resources. Internationally, India is forming partnerships and agreements with other countries to ensure a reliable supply of these essential minerals.
Q: How does finding critical minerals benefit India?
- Answer: Finding critical minerals benefits India by ensuring it has the necessary resources to advance in technology and renewable energy. This helps reduce dependence on imports, supports economic growth, creates jobs, and boosts India’s position in the global market.
Q: What challenges does India face in its hunt for critical minerals?
- Answer: India faces several challenges, including the high cost of exploration and extraction, environmental concerns, and geopolitical issues. Additionally, developing the necessary technology and infrastructure to process and utilize these minerals can be difficult.
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