{"id":44172,"date":"2024-12-24T12:41:07","date_gmt":"2024-12-24T07:11:07","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=44172"},"modified":"2025-05-06T09:03:02","modified_gmt":"2025-05-06T03:33:02","slug":"indias-reliance-on-china-for-critical-mineral","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indias-reliance-on-china-for-critical-mineral\/","title":{"rendered":"India\u2019s Reliance on China for Critical Minerals: Challenges and Opportunities"},"content":{"rendered":"<h2><strong>What\u2019s in today\u2019s article?<\/strong><\/h2>\n<ul>\n<li>Overview<\/li>\n<li>What are Critical Minerals?<\/li>\n<li>China\u2019s Dominance in Critical Minerals<\/li>\n<li>China&#8217;s Export Strategy<\/li>\n<li>India&#8217;s Dependency on China<\/li>\n<li>Why India Relies on Imports?<\/li>\n<li>Strategic Way Forward<\/li>\n<li>Conclusion<\/li>\n<\/ul>\n<h2><strong>Overview<\/strong><\/h2>\n<ul>\n<li>In 2023, the Ministry of Mines identified 30 critical minerals essential for India&#8217;s economic development and national security.<\/li>\n<li>The report highlighted a complete import dependency for 10 critical minerals but fell short of addressing India&#8217;s reliance on China\u2014a dominant player in the global critical minerals ecosystem.<\/li>\n<li>This reliance raises strategic vulnerabilities and the need for alternative strategies.<\/li>\n<\/ul>\n<h2><strong>What are Critical Minerals?<\/strong><\/h2>\n<ul>\n<li>Critical minerals are raw materials essential for economic and national security, often used in <strong>high-tech industries<\/strong> and <strong>renewable energy technologies<\/strong>.<\/li>\n<li>They are typically rare, difficult to mine and substitute, and often vulnerable to supply chain disruptions due to limited global production and geopolitical factors.<\/li>\n<li>The growing demand for these minerals, driven by technological advancements and the global transition to green energy, underscores their critical importance.<\/li>\n<li>Securing a stable supply of critical minerals is thus a strategic priority for many countries to ensure economic stability and technological progress.<\/li>\n<\/ul>\n<h2><strong>China\u2019s Dominance in Critical Minerals<\/strong><\/h2>\n<ul>\n<li><strong>Vast Resources<\/strong>: China has discovered 173 types of minerals, including:\n<ul>\n<li>13 energy minerals<\/li>\n<li>59 metallic minerals<\/li>\n<li>95 non-metallic minerals<\/li>\n<\/ul>\n<\/li>\n<li><strong>Strategic Investments<\/strong>: With $19.4 billion invested in exploration in 2023, China discovered 132 new mineral deposits, including 34 large ones.<\/li>\n<li><strong>Processing Capabilities<\/strong>: Dominates processing and refining:\n<ul>\n<li>Rare earths: 87%<\/li>\n<li>Lithium: 58%<\/li>\n<li>Silicon: 68%<\/li>\n<\/ul>\n<\/li>\n<li><strong>Global Investments<\/strong>: Strategic stakes in overseas mining projects amplify its control over supply chains.<\/li>\n<\/ul>\n<h2><strong>China&#8217;s Export Strategy<\/strong><\/h2>\n<ul>\n<li>China strategically controls critical mineral exports, particularly targeting those crucial for semiconductors, batteries, and high-tech manufacturing. Key examples include:\n<ul>\n<li><strong>2010 Rare Earth Embargo<\/strong>: Against Japan<\/li>\n<li><strong>Restrictions on Gallium, Germanium, and Antimony<\/strong>: Recent targeted actions<\/li>\n<li><strong>Ban on Rare Earth Technologies (2023)<\/strong>: To protect domestic interests<\/li>\n<\/ul>\n<\/li>\n<li>China avoids actions that might:\n<ul>\n<li>Disrupt its export-dependent industries<\/li>\n<li>Undermine its reliance on Western-imported raw materials<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>India&#8217;s Dependency on China<\/strong><\/h2>\n<ul>\n<li>India\u2019s import data (2019-2024) reveals high dependency on Chinese supplies for six critical minerals:\n<ul>\n<li><strong>Bismuth (85.6%)<\/strong>: Vital for pharmaceuticals and chemicals<\/li>\n<li><strong>Lithium (82%)<\/strong>: Core to EV batteries and energy storage<\/li>\n<li><strong>Silicon (76%)<\/strong>: Crucial for semiconductors and solar panels<\/li>\n<li><strong>Titanium (50.6%)<\/strong>: Key for aerospace and defense<\/li>\n<li><strong>Tellurium (48.8%)<\/strong>: Used in solar and thermoelectric devices<\/li>\n<li><strong>Graphite (42.4%)<\/strong>: Indispensable for EV batteries and steel production<\/li>\n<\/ul>\n<\/li>\n<li>China&#8217;s dominant global production shares in these minerals underscore India&#8217;s supply chain vulnerabilities.<\/li>\n<\/ul>\n<h2><strong>Why India Relies on Imports?<\/strong><\/h2>\n<ul>\n<li>Despite abundant mineral resources, structural challenges hinder India\u2019s mining and processing ecosystem:<\/li>\n<li><strong>Technological Barriers<\/strong>:\n<ul>\n<li>Limited ability to extract minerals like lithium from clay deposits in Jammu &amp; Kashmir, despite having 5.9 million tonnes of resources.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Investment Gaps<\/strong>:\n<ul>\n<li>High-risk investments in exploration deter private sector participation.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Policy Shortcomings<\/strong>:\n<ul>\n<li>Lack of incentives and advanced mining technologies limit domestic production capabilities.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>Strategic Way Forward<\/strong><\/h2>\n<ul>\n<li><strong>Securing Overseas Assets<\/strong>:\n<ul>\n<li>The government established <strong>KABIL<\/strong> (Khanij Bidesh India Limited) to acquire overseas mineral resources.<\/li>\n<\/ul>\n<\/li>\n<li><strong>International Collaborations<\/strong>:\n<ul>\n<li>Partnerships through the <strong>Minerals Security Partnership<\/strong> and <strong>Critical Raw Materials Club<\/strong> aim to diversify supply sources.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Research and Development<\/strong>:\n<ul>\n<li>Institutions like the <strong>Geological Survey of India<\/strong> and <strong>CSIR<\/strong> are advancing technologies for exploration and processing.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Promoting Recycling<\/strong>:\n<ul>\n<li>Circular economy initiatives and production-linked incentives focus on recycling critical minerals to reduce dependency.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Policy Reforms<\/strong>:\n<ul>\n<li>Introducing incentives to attract private investment and updating mining regulations to encourage domestic exploration.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>Conclusion<\/strong><\/h2>\n<ul>\n<li>India\u2019s transition from dependence on China requires sustained investment, technological advancements, and global partnerships.<\/li>\n<li>While government initiatives show promise, long-term commitment and proactive policies will be critical for securing a self-reliant future in critical minerals.<\/li>\n<\/ul>\n<hr \/>\n<h3><strong>Q1. What is an Ore in Mining?<\/strong><\/h3>\n<p>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.<\/p>\n<h2><strong>Q2. What do you mean by rare earth elements?<\/strong><\/h2>\n<p>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.<\/p>\n<p><strong>News: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/Industry\/indias-reliance-on-china-for-critical-minerals-explained\/article69020390.ece#:~:text=An%20in%2Ddepth%20examination%20of,%2C%20and%20graphite%20(42.4%25)\" target=\"_blank\" rel=\"nofollow noopener\">India\u2019s reliance on China for critical minerals<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Critical minerals are raw materials used in high-tech industries and renewable energy technologies.<\/p>\n","protected":false},"author":5,"featured_media":44173,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-44172","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/44172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=44172"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/44172\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/44173"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=44172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=44172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=44172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}