Critical Minerals
Kartavya Desk Staff
Syllabus: Economy
Source: TH
Context: In 2023, the Ministry of Mines identified 30 critical minerals vital for India’s economic growth and security. The report noted complete import dependency for 10 minerals, with China dominating the critical minerals sector.
Definition:
• Critical minerals are those minerals which are essential for economic development and national security, the lack of availability of these minerals or even concentration of existence, extraction or processing of these minerals in few geographical locations may lead to supply chain vulnerability and disruption.
Importance of Critical Minerals:
• Economic Development: Support industries like electronics, energy storage, and renewable energy.
• National Security: Essential for aerospace, defence, and telecommunication sectors.
• Sustainability: Vital for achieving global Net Zero emissions commitments through clean energy technologies.
• Technological Edge: Power critical sectors like semiconductors, EVs, and high-tech manufacturing.
• Global Transition: Underpin the shift to a low-carbon economy, fostering renewable energy adoption.
Factors leading to China’s dominance in critical minerals:
• Resource Base and Reserves: China has vast reserves of critical minerals like rare earth elements (REE), lithium, and graphite, ensuring a strong supply base.
• Processing Capabilities: Controls 87% of rare earth processing, 58% of lithium refining, and 68% of silicon processing, dominating global supply chains.
• Strategic Investments: Heavy investments in domestic and overseas mining projects to secure mineral assets globally.
• Vertical Integration: Developed end-to-end infrastructure from mining to refining, ensuring efficiency and cost-effectiveness in production.
Distribution of Critical Minerals
• In India
• Lithium: Found in Jammu & Kashmir (5.9 million tonnes). Rare Earth Elements (REE): Andhra Pradesh, Odisha, and Rajasthan. Graphite: Arunachal Pradesh (largest deposit in India). Cobalt: Found in Odisha and Jharkhand. Tungsten: Deposits in Rajasthan and Karnataka.
• Lithium: Found in Jammu & Kashmir (5.9 million tonnes).
• Rare Earth Elements (REE): Andhra Pradesh, Odisha, and Rajasthan.
• Graphite: Arunachal Pradesh (largest deposit in India).
• Cobalt: Found in Odisha and Jharkhand.
• Tungsten: Deposits in Rajasthan and Karnataka.
• In the World
• China: Dominates lithium, graphite, and REE processing (controls 87% of rare earth processing). Australia: Major producer of lithium and REE. DRC: Largest cobalt reserves (60% of global output). USA: Significant REE mining but lacks refining capabilities. South America: Lithium Triangle (Chile, Argentina, Bolivia).
• China: Dominates lithium, graphite, and REE processing (controls 87% of rare earth processing).
• Australia: Major producer of lithium and REE.
• DRC: Largest cobalt reserves (60% of global output).
• USA: Significant REE mining but lacks refining capabilities.
• South America: Lithium Triangle (Chile, Argentina, Bolivia).
Initiatives taken by India for critical minerals:
• KABIL: Joint venture securing overseas mineral assets for supply-chain diversification.
• Strategic Partnerships: Member of Minerals Security Partnership and Critical Raw Materials Club.
• Exploration and Research: Geological Survey of India (GSI) and CSIR promoting domestic exploration and recycling technologies.
• Production-Linked Incentives: Focus on recycling and extracting critical minerals.
• National Strategies: Proposed Centre of Excellence for Critical Minerals (CECM) to streamline policies and strategies.
Challenges to critical minerals:
• Import Dependency: Heavy reliance on China for refining and processing critical minerals.
• Exploration Bottlenecks: Lack of advanced mining technology for deep-seated minerals.
• Policy Gaps: Absence of clear regulatory frameworks and incentives for private sector participation.
• Environmental Concerns: High environmental impact of mining and refining processes.
• Supply Chain Risks: Geopolitical tensions and export restrictions by dominant players like China.
Recommendations of Veena Dermal Committee:
• Establish a Centre of Excellence for Critical Minerals to address technological gaps and enhance domestic capabilities.
• Periodically update the list of critical minerals for India’s evolving needs.
• Promote recycling technologies and circular economy practices to reduce virgin mineral dependency.
• Develop policies to attract private investment in mineral exploration and processing.
• Strengthen international collaborations for securing overseas assets and sharing advanced technologies.
Conclusion:
India’s growing focus on critical minerals is pivotal for sustaining economic growth, technological advancements, and energy transition. A comprehensive strategy addressing exploration, processing, and supply chain risks is essential to reduce dependency and achieve self-reliance in this critical sector.
Insta Links:
• Critical-minerals-list
• Consider the following minerals: (UPSC-2020)
• Sillimanite
In India, which of the above is/are officially designated as major minerals?
• 1 and 2 only
• 1 and 3 only
• 2, 3 and 4 only
Answer: d)