Central Idea

• In a strategic move, the Indian government has recognized the importance of 30 critical minerals, including lithium, cobalt, nickel, graphite, tin, and copper, which play a crucial role in the country’s economic development and national security. These minerals are essential for various sectors such as clean technologies, information and communication technologies, and advanced manufacturing inputs.

*Relevance of the topic:

*As countries shift towards clean energy and digital economies, critical and rare earth minerals are essential for driving this transition

*Dependence on other nations for procuring these resources can pose significant risks to the economy and strategic autonomy.

*Also keep an eye on the reserves of these critical minerals. For example, Vast Lithium deposits discovered in the Himalayan region of Kashmir. A 5.9-million-ton lithium deposit was discovered in the Reasi district by the Geological Survey of India

Background

• Previous efforts have been made to identify critical minerals in India, including a 2011 initiative by the Planning Commission (now NITI Aayog).
• This initiative emphasized the importance of ensuring the availability of mineral resources for industrial growth through planned exploration and management of existing resources. From 2017 to 2020, the country also focused on the exploration and development of rare earth elements.
• The latest exercise was triggered by India’s international commitments to reduce carbon emissions and transition towards clean energy sources

Major Critical Minerals and its applications

• Graphite: Graphite is extensively used in the manufacturing of electric vehicle (EV) batteries. It is a key component in the anode of lithium-ion batteries, which power EVs and several portable electronic devices.
• Lithium: Lithium is another essential mineral in the production of EV batteries. Lithium-ion batteries are widely used in electric vehicles, providing them with energy storage capacity. Lithium is also utilized in other applications, such as renewable energy storage systems.
• Cobalt: Cobalt is a critical mineral required for the production of lithium-ion batteries used in electric vehicles. It enhances the stability and performance of the batteries. Additionally, cobalt finds applications in aerospace, communications, and defense industries. It is used in manufacturing fighter jets, drones, and other critical equipment.
• Rare Earth Minerals: Rare earth minerals, although required in trace amounts, play a significant role in the manufacturing of semiconductors and high-end electronics. These minerals include elements like neodymium, dysprosium, and praseodymium, which are crucial for producing magnets used in electric motors, wind turbines, and other advanced technology applications.
• Nickel: Nickel is another essential component in lithium-ion batteries, especially those used in electric vehicles. It helps enhance battery performance and energy density. Nickel is also utilized in various other industries, including aerospace and defense.

Three-stage Assessment for identification of critical minerals in India

1. In the first stage, strategies of various countries like Australia, the USA, Canada, UK, Japan, and South Korea were analyzed. Sixty-nine elements/minerals that were considered critical by these major global economies were shortlisted. Domestic initiatives were also given due importance.
2. The second stage involved inter-ministerial consultations with various ministries to identify minerals critical to their sectors. Valuable inputs and suggestions were received from ministries such as Power, Atomic Energy, New and Renewable Energy, Fertilizers, Science and Technology, Pharmaceuticals, and NITI Aayog.
3. The third stage aimed to develop an empirical formula for evaluating mineral criticality. This stage drew inspiration from the European Union’s methodology, which considers economic importance and supply risk as two major factors. Based on this comprehensive assessment process, a list of 30 critical minerals for India was finalized.

Importance of Establishing a Specialized Agency

• The committee responsible for identifying critical minerals emphasized the need to establish a National Institute or Centre of Excellence for critical minerals, similar to Australia’s CSIRO.
• This proposed center would periodically update the list of critical minerals, develop a critical mineral strategy, and execute functions essential for the development of an effective value chain in the country.

Significance of independent source of Critical Minerals and its impact

• Key Industry Enablers: Critical minerals are fundamental components in industries such as clean energy, electronics, transportation, defense, and manufacturing. They enable the production of advanced technologies, including electric vehicles, renewable energy systems, high-tech electronics, and communication devices. Without a stable supply of critical minerals, these industries would face significant challenges in meeting the growing global demand for their products.
• Technological Advancements: Critical minerals are crucial for driving technological advancements and innovation. They provide the necessary raw materials for developing and improving clean technologies, energy storage systems, telecommunications devices, advanced electronics, and defense technologies. Access to critical minerals supports the development of cutting-edge technologies, enhances competitiveness, and fosters sustainable practices in various sectors.
• Clean Energy Transition: Critical minerals play a pivotal role in the transition to clean energy sources. Minerals like lithium, cobalt, nickel, and rare earth elements are vital for the production of high-performance batteries used in electric vehicles and renewable energy storage systems. By ensuring a stable supply of these minerals, countries can accelerate the adoption of clean energy technologies, reduce greenhouse gas emissions, and mitigate the impact of climate change.
• Economic Growth and Job Creation: Critical minerals contribute to economic growth by supporting industries that generate employment opportunities and foster innovation. Domestic production and processing of critical minerals create jobs across the entire value chain, including exploration, mining, processing, manufacturing, and research and development. By developing a robust critical minerals sector, countries can stimulate economic growth, enhance competitiveness, and reduce dependence on foreign imports.
• National Security: Dependence on foreign sources for critical minerals can pose risks to national security. Disruptions in the supply chain due to geopolitical factors, trade conflicts, or market fluctuations can significantly impact industries crucial for defense, infrastructure, and strategic sectors. By identifying and developing domestic sources of critical minerals, countries can enhance their resilience, reduce vulnerabilities, and safeguard national security interests.
• Sustainable Resource Management: The identification and sustainable management of critical minerals contribute to responsible resource utilization and environmental stewardship. By ensuring responsible mining practices, promoting recycling and circular economy approaches, and minimizing the environmental impact of mineral extraction and processing, countries can meet their mineral needs while addressing social, environmental, and governance concerns.

Conclusion

• The identification of critical minerals is a strategic move by the Indian government towards economic development and national security. The country can learn from global practices while leveraging domestic and international collaborations to secure critical mineral resources and accelerate its growth in sectors like clean technologies and advanced manufacturing.

Also read:

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now