Securing India's Mineral Future

Syllabus Areas:

GS III - Economy

Critical minerals such as lithium, cobalt, nickel, and rare earth elements are vital for energy transition technologies like:

  • Batteries for electric vehicles (EVs)
  • Solar panels
  • Wind turbines
  • These minerals are essential for India's goals in:
    • Energy security
    • Net-zero emissions by 2070
    • Atmanirbhar Bharat (self-reliant India)

India’s Vulnerability

  • India is highly import-dependent for many critical minerals.
  • Over-reliance on specific countries (especially China) increases geopolitical and supply chain risks.

Steps Taken by India

  1. Critical Minerals List
    • In June 2023, India released a list of 30 critical minerals based on strategic, economic, and supply-risk criteria.
  2. KABIL (Khanij Bidesh India Ltd.)
    • A government-backed venture for securing overseas mineral assets.
    • Has signed MoUs with countries like Argentina and Australia for lithium and other mineral exploration.
  3. National Mineral Policy (2019)
    • Promotes private investment, exploration, and transparency in mineral governance.
  4. Reforms in Mining Laws
    • Changes in MMDR Act (Mines and Minerals Development and Regulation Act):
      • Allows private entities to participate in mineral exploration.
      • Auction-based allocation of mineral blocks for increased competitiveness.

Challenges Identified

  1. Exploration Gap
    • India has explored only a fraction of its geological potential.
    • Lack of comprehensive and updated geological surveys.
  2. Delayed Clearances: Environmental and forest clearances delay project execution.
  3. Private Sector Participation: Uncertainty in policy, inconsistent incentives, and regulatory bottlenecks hinder private players.
  4. Technological & Financial Limitations
    • Advanced technologies are needed for:
      • Deep-sea mining
      • Extraction from low-grade ores
    • High capital costs deter investment.

Global Competition & Strategic Dependencies

  1. China’s Dominance
    • China dominates processing and refining of critical minerals (esp. rare earths).
    • India lacks refining capacities for several minerals.
  2. International Cooperation
    • India is part of the Minerals Security Partnership (MSP) with countries like the US, Australia, Japan.
      • Goal: Secure sustainable and resilient mineral supply chains.

Strategic Recommendations

  1. Domestic Exploration and Development: Strengthen Geological Survey of India (GSI).
    • Incentivize junior mining companies (exploration-focused firms) through tax and investment support.
  2. Public-Private Partnerships: Encourage joint ventures in mining, processing, and recycling.
  3. Research & Development (R&D): Invest in green technologies for efficient mineral extraction and recycling.
  4. Recycling & Circular Economy: Focus on urban mining – recycling critical minerals from e-waste and used batteries.
  5. Strategic Reserves: Create buffer stocks of critical minerals, akin to oil reserves.

India stands at a critical juncture where securing access to critical minerals is vital for its strategic autonomy, clean energy transition, and economic growth. A cohesive policy, international cooperation, and domestic reforms are essential to mitigate risks and enhance supply resilience.

Prelims Questions:

  1. Which of the following statements regarding critical minerals is/are correct?
    1. Critical minerals are essential for emerging technologies such as electric vehicles and renewable energy systems.
    2. India is self-sufficient in processing and refining all its critical mineral needs.
    3. China is a major global player in the processing of rare earth elements.

    2. Select the correct answer using the code below:

    1. 1 and 2 only
    2. 1 and 3 only
    3. 2 and 3 only
    4. 1, 2 and 3

    Answer: (b) 1 and 3 only

    Statement 2 is incorrect — India is not self-sufficient in processing/refining critical minerals.

  2. Consider the following initiatives related to India’s critical minerals strategy:
    1. KABIL is a joint venture aimed at acquiring strategic mineral assets abroad.
    2. The National Mineral Policy, 2019 focuses on incentivizing exploration and private sector investment.
    3. India is not a part of any multilateral initiative for mineral security.

    3. Which of the statements given above is/are correct?

    1. 1 only
    2. 1 and 2 only
    3. 2 and 3 only
    4. 1, 2 and 3

    Answer: (b) 1 and 2 only

    Statement 3 is incorrect — India is a part of the Minerals Security Partnership (MSP).

  3. What is “urban mining” as referred to in the context of critical minerals?
    1. Exploration of untapped mineral deposits in urban areas
    2. Use of satellite technology for mapping city-based mineral zones
    3. Recycling of valuable minerals from e-waste and used electronics
    4. Mining of underground urban structures like metro tunnels

    4. Answer: (c) Recycling of valuable minerals from e-waste and used electronics

    Mains Question:

    Q. India’s transition to a clean energy economy hinges on the availability of critical minerals. In this context, examine the measures taken by India to secure its critical mineral supply chains and suggest a way forward for ensuring long-term mineral security. 250 Words 15 Marks