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India is focussing on mineral diplomacy to secure critical minerals like lithium and cobalt, which are essential for its growing manufacturing and technological capabilities.

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CRITICAL MINERALS OF INDIA

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What are the main pillars of India’s mineral diplomacy?

Bilateral Engagements

Developing partnerships with resource-rich countries such as Australia, Argentina, the United States, Russia, and Kazakhstan. These collaborations help to secure critical minerals like lithium and cobalt. Khanij Bidesh India Ltd. (KABIL), an Indian joint venture, plays an important role in facilitating agreements and acquisitions.

What role does KABIL play in India’s mineral diplomacy?

Khanij Bidesh India Limited (KABIL) was founded in 2019. It is a joint venture of National Aluminium Company Ltd. (NALCO), Hindustan Copper Limited (HCL), and Mineral Exploration & Consultancy Limited (MECL).

The Ministry of Mines established KABIL to ensure the supply of critical minerals. It works by signing agreements and forming alliances with mineral-producing countries like Australia and Argentina to identify key projects such as lithium and cobalt extraction.

KABIL aims to diversify India's mineral sources and establish a long-term supply chain for essential resources.

International Cooperation

India is strengthening its global engagement through multilateral initiatives such as the Quad, the Indo-Pacific Economic Framework for Prosperity (IPEF), and the Mineral Security Partnership (MSP). Through these platforms, India can gain access to global best practices and collaborate with partners such as the United States, the European Union, South Korea, and Australia.

How is India’s private sector involved in mineral diplomacy?

While the Indian government is actively engaged in mineral diplomacy, private-sector participation has been limited. However, some companies are entering the market, such as Altmin Private Limited, which has signed an agreement with Bolivia's national company, YLB, to secure lithium supplies for lithium-ion batteries.

Increasing private sector participation will be essential for building a stronger supply chain and ensuring mineral security.

What challenges does India face in mineral diplomacy?

There is a lack of clear policy guidance and strategy for the private sector to participate in the critical mineral supply chain. A comprehensive road map is required to encourage private investment.

While India has formed several partnerships, their long-term viability and trust are uncertain. Strengthening these relationships is critical to ensuring dependable access to critical minerals.

How can India improve its mineral diplomacy to strengthen its position?

Developing a clear strategy for private sector participation in the critical mineral supply chain will help India to secure its mineral future.

To ensure mineral security, India must establish long-term and strategic partnerships, particularly with key players in the EU, South Korea, and the Quad.

India should increase its diplomatic engagement, especially in the area of mineral security. This includes creating a separate mineral diplomacy division within the Ministry of External Affairs and appointing special roles in diplomatic missions.

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Mineral Security Partnership (MSP)

Indo-Pacific Economic Framework for Prosperity (IPEF)

Source:

The Hindu