Overview
- In 2023, the Ministry of Mines identified 30 critical minerals essential for India’s economic development and national security.
- The report highlighted a complete import dependency for 10 critical minerals but fell short of addressing India’s reliance on China—a dominant player in the global critical minerals ecosystem.
- This reliance raises strategic vulnerabilities and the need for alternative strategies.
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 thus a strategic priority for many countries to ensure economic stability and technological progress.
China’s Dominance in Critical Minerals
- Vast Resources: China has discovered 173 types of minerals, including:
- 13 energy minerals
- 59 metallic minerals
- 95 non-metallic minerals
- Strategic Investments: With $19.4 billion invested in exploration in 2023, China discovered 132 new mineral deposits, including 34 large ones.
- Processing Capabilities: Dominates processing and refining:
- Rare earths: 87%
- Lithium: 58%
- Silicon: 68%
- Global Investments: Strategic stakes in overseas mining projects amplify its control over supply chains.
China’s Export Strategy
- China strategically controls critical mineral exports, particularly targeting those crucial for semiconductors, batteries, and high-tech manufacturing. Key examples include:
- 2010 Rare Earth Embargo: Against Japan
- Restrictions on Gallium, Germanium, and Antimony: Recent targeted actions
- Ban on Rare Earth Technologies (2023): To protect domestic interests
- China avoids actions that might:
- Disrupt its export-dependent industries
- Undermine its reliance on Western-imported raw materials
India’s Dependency on China
- India’s import data (2019-2024) reveals high dependency on Chinese supplies for six critical minerals:
- Bismuth (85.6%): Vital for pharmaceuticals and chemicals
- Lithium (82%): Core to EV batteries and energy storage
- Silicon (76%): Crucial for semiconductors and solar panels
- Titanium (50.6%): Key for aerospace and defense
- Tellurium (48.8%): Used in solar and thermoelectric devices
- Graphite (42.4%): Indispensable for EV batteries and steel production
- China’s dominant global production shares in these minerals underscore India’s supply chain vulnerabilities.
Why India Relies on Imports?
- Despite abundant mineral resources, structural challenges hinder India’s mining and processing ecosystem:
- Technological Barriers:
- Limited ability to extract minerals like lithium from clay deposits in Jammu & Kashmir, despite having 5.9 million tonnes of resources.
- Investment Gaps:
- High-risk investments in exploration deter private sector participation.
- Policy Shortcomings:
- Lack of incentives and advanced mining technologies limit domestic production capabilities.
Strategic Way Forward
- Securing Overseas Assets:
- The government established KABIL (Khanij Bidesh India Limited) to acquire overseas mineral resources.
- International Collaborations:
- Partnerships through the Minerals Security Partnership and Critical Raw Materials Club aim to diversify supply sources.
- Research and Development:
- Institutions like the Geological Survey of India and CSIR are advancing technologies for exploration and processing.
- Promoting Recycling:
- Circular economy initiatives and production-linked incentives focus on recycling critical minerals to reduce dependency.
- Policy Reforms:
- Introducing incentives to attract private investment and updating mining regulations to encourage domestic exploration.
Conclusion
- India’s transition from dependence on China requires sustained investment, technological advancements, and global partnerships.
- While government initiatives show promise, long-term commitment and proactive policies will be critical for securing a self-reliant future in critical minerals.
Q1. What is an Ore in Mining?
Ore is natural rock or sediment that contains one or more valuable minerals concentrated above background levels, typically containing metals that can be mined, treated and sold at a profit. The grade of ore refers to the concentration of the desired material it contains.
Q2. What do you mean by rare earth elements?
The rare earth elements are a set of seventeen metallic elements. These include the fifteen lanthanides on the periodic table plus scandium and yttrium. Rare earth elements are an essential part of many high-tech devices.
News: India’s reliance on China for critical minerals
Last updated on Dec 26, 2024
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