{"id":49081,"date":"2025-07-24T19:23:08","date_gmt":"2025-07-24T13:53:08","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=49081"},"modified":"2025-07-30T11:43:25","modified_gmt":"2025-07-30T06:13:25","slug":"critical-minerals-strategic-asset-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/24-07-2025\/critical-minerals-strategic-asset-india","title":{"rendered":"Critical Mineral As Strategic Asset For India"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy; Science &amp; Technology<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India needs to accelerate its efforts in the global supply chain, as critical minerals are emerging as the defining geoeconomic axis of the 21st century.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About Critical Minerals<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>These are the minerals that are <strong>essential for the production of modern technologies.<\/strong> They are important for <strong>national security and the economy.<\/strong><\/li>\n\n\n\n<li>These minerals are labelled as critical because of their<strong> lack of availability (spatial distribution), methods of extraction or processing, and vulnerability and disruption in supply chains.<\/strong><\/li>\n\n\n\n<li>These minerals impact the economy relatively higher than the other raw materials when the <strong>risk of supply shortage.<\/strong><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img data-dominant-color=\"f0dbd0\" data-has-transparency=\"false\" style=\"--dominant-color: #f0dbd0;\" loading=\"lazy\" decoding=\"async\" width=\"540\" height=\"222\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/Critical-Mineral-As-Strategic-Asset-For-India.png\" alt=\"Critical Mineral As Strategic Asset For India\" class=\"not-transparent wp-image-49093\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/Critical-Mineral-As-Strategic-Asset-For-India.png 540w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/Critical-Mineral-As-Strategic-Asset-For-India-300x123.png 300w\" sizes=\"auto, (max-width: 540px) 100vw, 540px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Global Landscape: Strategic Concentration and China&#8217;s Dominance<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>These minerals are <strong>geographically concentrated, opaque supply chains, and complex midstream processing<\/strong> with <strong>China dominating <\/strong>the midstream processing stage \u2014 refining over <strong>90% of rare earths, 70% of cobalt, and 60% of lithium.<\/strong>\n<ul class=\"wp-block-list\">\n<li>It creates a strategic vulnerability for countries like India that rely heavily on imports.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Position<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India is <strong>100% import-dependent<\/strong> for several <a href=\"https:\/\/www.nextias.com\/ca\/editorial-analysis\/23-01-2025\/critical-minerals\">critical minerals<\/a>, including lithium, cobalt, and rare earths.<\/li>\n\n\n\n<li><strong>National Critical Mineral Mission (NCMM)<\/strong> aims to secure supply chains and reduce dependency. It includes:\n<ul class=\"wp-block-list\">\n<li><strong>Identifying 30 critical minerals (Ministry of Mines)<\/strong> essential for national security, economic development, and technological advancement, that are indispensable for:\n<ul class=\"wp-block-list\">\n<li><strong>Clean energy transitions<\/strong> (e.g., solar panels, wind turbines, EV batteries);<\/li>\n\n\n\n<li><strong>Digital infrastructure <\/strong>(e.g., semiconductors, smartphones);<\/li>\n\n\n\n<li><strong>National security<\/strong> (e.g., defense equipment, satellites)<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Auctioning Mineral Blocks<\/strong> (five tranches completed);<\/li>\n\n\n\n<li>Accelerating <strong>domestic exploration<\/strong> (422 projects in three years): India is rapidly expanding its exploration:\n<ul class=\"wp-block-list\">\n<li><strong>195 projects completed<\/strong> in the past year<\/li>\n\n\n\n<li><strong>227 projects approved<\/strong> for the current year<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Refining and Processing Gap:<\/strong> The country remains 100% import-dependent for refining lithium, cobalt, rare earths, and other battery-grade materials.<\/li>\n\n\n\n<li><strong>Strategic Risks and Industrial Vulnerabilities:<\/strong> China\u2019s <strong>recent export restrictions on rare<\/strong> <strong>earths <\/strong>have already impacted India\u2019s automotive industry.\n<ul class=\"wp-block-list\">\n<li>Electric vehicle (EV) and internal combustion engine (ICE) production are both reliant on <strong>rare earth magnets,<\/strong> making supply security critical.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Other Challenges:<\/strong>\n<ul class=\"wp-block-list\">\n<li>High capital costs and limited processing capacity;<\/li>\n\n\n\n<li>Lack of technically qualified bidders; domestic refining capacity; and shortage of qualified bidders<\/li>\n\n\n\n<li>Midstream bottlenecks in refining and conversion<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Strategic Solutions<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Establish <strong>dedicated mineral processing zones<\/strong> with modern infrastructure<\/li>\n\n\n\n<li>Offer <strong>Production-Linked Incentives (PLI)<\/strong> to attract private investment<\/li>\n\n\n\n<li>Develop a stockpiling framework to buffer against supply shocks<\/li>\n\n\n\n<li><strong>ESG Compliance and Community Engagement:<\/strong> Sustainable mining is non-negotiable. Many critical mineral reserves are located in <strong>tribal belts, and ecologically sensitive zones.<\/strong>\n<ul class=\"wp-block-list\">\n<li>India needs to adopt robust <strong>ESG frameworks,<\/strong> including third-party audits, transparent environmental assessments, and <strong>community benefit-sharing<\/strong> and consultation mechanisms.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Towards Circularity and Sustainability:<\/strong> To reduce import dependency, India needs to build a<strong> circular economy<\/strong> for critical minerals:\n<ul class=\"wp-block-list\">\n<li><strong>Battery and electronics recycling<\/strong> must shift from informal to formal systems;<\/li>\n\n\n\n<li>Investments in <strong>collection, dismantling and recovery infrastructure<\/strong> are necessary;<\/li>\n\n\n\n<li><strong>Incentives <\/strong>should be provided to recyclers to encourage participation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Strategic Alignment and Institutional Support: <\/strong>Effective policymaking will require:\n<ul class=\"wp-block-list\">\n<li>Ongoing <strong>demand-supply assessments;<\/strong><\/li>\n\n\n\n<li><strong>Dynamic reassessment<\/strong> of the critical minerals list;<\/li>\n\n\n\n<li><strong>Technological foresight<\/strong> to adapt to changing industrial needs.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Global Alliances and Friendshoring<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s international efforts include<strong> joining the Mineral Security Partnership; and forging bilateral ties<\/strong> with Australia, Argentina, and others.<\/li>\n\n\n\n<li>Geopolitical platforms like the <strong>QUAD and G20 <\/strong>should be leveraged to diversify supply chains; build<strong> joint ventures;<\/strong> and <strong>enable best-practice sharing.<\/strong><\/li>\n\n\n\n<li>Additionally, India needs to establish a <strong>critical mineral stockpiling framework<\/strong> to buffer against shocks.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Road Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s ambitions for technological sovereignty and clean energy leadership hinge on its ability to secure critical minerals. It requires:\n<ul class=\"wp-block-list\">\n<li>Timely execution of policies;<\/li>\n\n\n\n<li>Sustained institutional support;<\/li>\n\n\n\n<li>Strategic alignment with foreign policy goals<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q] <\/strong>Discuss the strategic importance of critical minerals for India&#8217;s economic and national security goals. What policy measures should India prioritize to ensure a resilient and self-reliant supply chain in the face of global competition and geopolitical uncertainties?<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/indianexpress.com\/article\/opinion\/columns\/critical-minerals-are-a-strategic-asset-india-must-not-fall-behind-10145439\/\" target=\"_blank\" rel=\"noopener\">Source: IE<\/a><br><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2025\/07\/UPSC-Editorial-Analysis-24-July-2025.PDF.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>India needs to accelerate its efforts in the global supply chain, as critical minerals are emerging as the defining geoeconomic axis of the 21st century.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-49081","post","type-post","status-publish","format-standard","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/49081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=49081"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/49081\/revisions"}],"predecessor-version":[{"id":49668,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/49081\/revisions\/49668"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=49081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=49081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=49081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}