INDIA’S RELIANCE ON CHINA FOR CRITICAL MINERALS

In 2023, India identified 30 critical minerals essential for its economic and national security. These minerals, crucial for high-tech and renewable energy sectors, are predominantly controlled by China. India faces challenges like technological barriers, investment gaps, and policy shortcomings, but is working to secure overseas assets, collaborate internationally, and promote domestic exploration.

Last Updated on 26th December, 2024
4 minutes, 20 seconds

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Context:  

The Ministry of Mines in 2023 identified 30 critical minerals essential for the nation’s economic development and national security.

What are Critical Minerals?

Critical minerals are used frequently in high-tech sectors and renewable energy technologies. They are rare, hard to mine and replace and vulnerable to supply chain disruptions because of their limited worldwide production. The shift to green energy and technological advancement has led to an increase in demand for these minerals. Ensuring a steady supply of vital minerals is a top priority for many countries.

Dominance of China:

  • China has found 173 types of
  • 13 minerals 60 metallic
  • 95 non-metallic
  • China discovered 132 new mineral deposits, including 34 large ones. Dominates processing and refining: 85% of the earth's minerals are rare
  • The amount of lithium is 42%. The percentage of Silicon is 68%.
  • Global Investments have strategic stakes in overseas mining

China's Control on Critical Minerals

2010 Rare Earth Embargo

China imposed an embargo against Japan highlighting control over rare earth elements crucial for technology.

Restrictions on Gallium, Germanium and Antimony

China has recently restricted the export of these minerals impacting industries dependent on them.

Ban on Rare Earth Technologies (2023)

China imposed restrictions to protect its domestic interests limiting access to critical rare earth technologies.

China's Strategic Considerations

 

Avoiding Disruption of Export-Dependent Industries

China avoids measures that could harm its own industries reliant on exports.

Avoiding Undermining Dependence on Western Imports

China also takes care not to disrupt its reliance on raw materials imported from Western nations.

India’s Dependency on China:

Critical Minerals Dependent on China

Bismuth (85.6%)

Vital for pharmaceuticals and chemicals.

Lithium (82%)

Core component for EV batteries and energy storage.

Silicon (76%)

Crucial for semiconductors and solar panels.

Titanium (50.6%)

Key for aerospace and defense applications.

Tellurium (48.8%)

Used in solar and thermoelectric devices.

Graphite (42.4%)

Indispensable for EV batteries and steel production.

China's Dominance in Mineral Production

China holds a dominant global share in the production of these critical minerals, making India vulnerable to supply chain disruptions.

Why India Relies on Imports?

Technological Barriers

Limited ability to extract minerals like lithium from clay deposits, despite having substantial resources (e.g., 5.9 million tonnes in Jammu & Kashmir).

Investment Gaps

High-risk perception deters private sector investment in exploration and mining.

Policy Shortcomings

Lack of incentives and advanced mining technologies limits the development of domestic production capabilities.

Way Forward

Securing Overseas Assets

India established KABIL (Khanij Bidesh India Limited) to acquire overseas mineral resources.

International Collaborations

India is partnering with global initiatives like the Minerals Security Partnership and Critical Raw Materials Club to diversify supply sources.

Research and Development

Institutions such as the Geological Survey of India and CSIR are advancing exploration and processing technologies.

Promoting Recycling

Focus on circular economy initiatives and production-linked incentives to promote recycling of critical minerals to reduce dependency.

Policy Reforms

Proposals to introduce incentives for private investment and update mining regulations to encourage domestic exploration.

Source:

THE HINDU

PRACTICE QUESTION

Q.Critical minerals play a crucial role in the advancement of emerging technologies and energy transitions. Highlight the challenges faced by India in securing a stable supply of these minerals and suggest measures to mitigate these challenges. (250 words).

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