China Tops the Critical Mineral Suppliers to India

India's Dependence on China for Critical Minerals

  • China is the top supplier of critical minerals to India in raw, metallic, or finished forms.
  • Of the 24 critical minerals identified by the Mines Ministry, China is among the top three suppliers for at least 15.

List of the 24 Critical and Strategic Minerals: identified by Ministry of Mines

  • 1. Antimony
  • 2. Beryllium
  • 3. Bismuth
  • 4. Cobalt
  • 5. Copper
  • 6. Gallium
  • 7. Germanium
  • 8. Graphite
  • 9. Hafnium
  • 10. Indium
  • 11. Lithium
  • 12. Molybdenum
  • 13. Niobium
  • 14. Nickel
  • 15. Platinum Group Elements (PGE)
  • 16. Phosphorus
  • 17. Potash
  • 18. Rare Earth Elements (REE)
  • 19. Rhenium
  • 20. Silicon
  • 21. Strontium
  • 22. Tantalum
  • 23. Tellurium
  • 24. Tin

What are Critical Minerals?

Critical minerals are minerals that are economically important and have a high risk of supply chain disruption.

What is the significance of the Critical Minerals?

These minerals are essential for key industries such as electronics, renewable energy, defense, aerospace, and infrastructure but are often found in limited geographic locations, making them vulnerable to geopolitical and economic fluctuations.

India’s Imports

  • Largest Share – China is the top supplier of:
    • Cobalt (commercial oxides)
    • Molybdenum (unwrought, bars)
    • Nickel (oxide, raw form)
    • Potash & Glauconite
    • Rare Earth Elements (REE)
    • Tantalum, Titanium, Tungsten
    • Artificial Graphite (66% market share)
  • High Import Dependence – China’s share in certain minerals:
    • 99% – Potassium nitrates
    • 72% – REEs, Raw titanium
    • 66% – Artificial graphite

India’s Imports from Other Countries

Critical Minerals Country
Gallium & Indium 100% from the USA
Niobium Germany & Russia
Selenium Japan
Tin Indonesia
Platinum Group Elements UK & UAE
Phosphorus Jordan
Vanadium Germany (ores), Mexico (oxides)
Zirconium Indonesia (ores), France (powders)
Lithium Carbonates Ireland
Molybdenum Chile (ores), USA (oxides)

Trade & Import Bill

  • Net Import Status – India is a net importer of most critical minerals due to limited reserves/production.
  • Import Bill (FY24) – ₹30,000 crore
    • Phosphorus – ₹12,648 crore (highest)
    • REE – ₹247 crore (only category with a trade surplus)
  • Import Bill (FY23) – ₹42,000 crore
    • Phosphorus – ₹15,123 crore

Practice Questions for Prelims

1Q. Consider the following statements regarding India’s mineral imports:
  1. India is a net importer of most critical minerals.
  2. The largest import bill for FY24 was for phosphorus.
  3. China supplies over 70% of India’s Rare Earth Elements.
Which of the above statements are correct?
  1. 1 and 2 only
  2. 2 and 3 only
  3. 1, 2, and 3
  4. 1 and 3 only

Mains

  • Examine the strategic importance of Rare Earth Elements (REE) for India’s industrial and defense sectors. How can India reduce its dependence on China for REE supplies? (250 words)