11.4 C
Belgrade
15/10/2024
Mining News

India’s global partnerships in critical minerals: A strategic overview

This blog series explores India’s expanding international collaborations in the critical minerals sector, serving as a comprehensive resource for primary sources. It delves into various agreements India has established or is pursuing with key countries, international organizations and intergovernmental frameworks.

These partnerships highlight India’s recognition that achieving self-reliance in critical minerals requires a foreign policy centered on international cooperation in sourcing, processing and securing global supply chains. Indian policymakers view this collaboration not merely as a challenge but as a strategic opportunity to advance the nation’s vision for a developed India by 2047. B. V. R. Subramanyam, CEO of the Indian government’s think tank NITI Aayog, notes that climate change presents India with a chance to lead in climate technology.

Supported by

As part of CSEP’s research on an Indian strategy for critical minerals—under the Mining and Non-Fuel Minerals and Foreign Policy and Security studies—this series aims to provide: a) an accessible reference on India’s partnerships to secure essential minerals; b) insights into how these collaborations can support India’s climate transition goals; and c) initial assessments on India’s positioning in the global critical minerals supply chain, considering its foreign and economic policy interests.

The geopolitical landscape of critical minerals

With the global push for critical minerals intensifying, countries are rapidly forming partnerships to establish resilient supply chains for resources vital to the green transition and technological advancements. Critical minerals such as lithium, cobalt and rare earth elements are essential for renewable energy technologies, electric vehicles, advanced manufacturing, and digital infrastructure. As demand for these materials grows, so does the geopolitical competition to secure sustainable supply chains, embedding access to these minerals into national security and foreign policy strategies.

For India, which aims to decarbonize and transition to green energy, securing these minerals is crucial. Given its limited domestic reserves, India must foster international cooperation to ensure a steady supply of these resources. Consequently, India has engaged in various bilateral, minilateral and multilateral agreements to strengthen its critical mineral supply chains and enhance resilience.

Navigating supply chain vulnerabilities

Emerging economies like India must ensure their energy systems are resilient while reducing emissions. However, critical minerals are increasingly concentrated in specific regions, such as Africa and Latin America, leading to geopolitical competition. This concentration raises the risk of supply chain disruptions, prompting policymakers to address vulnerabilities, especially in countries with limited reserves.

Geopolitical events—including the COVID-19 pandemic, the Ukraine war, and U.S.-China tensions—have underscored the urgency of securing supply chains. As the climate crisis looms, ensuring stable access to critical minerals has become paramount. Recognizing China’s dominance in mining and processing many critical minerals has spurred countries to diversify their supply chains, as China controls around 60% of global production and 85% of processing capacity.

The shift to renewable energy is expected to further increase global demand for critical minerals. The International Energy Agency (IEA) projects that demand for lithium could surge by over 40 times by 2040 if global climate goals are met. Such demand spikes will strain supply chains, heightening competition between nations and potential market instability.

India’s strategic international engagements

In recent years, India has taken significant steps to secure a resilient supply of critical minerals, essential for its green energy transition and industrial growth. While much public policy focus has been on the domestic landscape, there has been increasing attention on the international dimension, where the Indian government has integrated critical minerals into various partnerships, addressing issues like green technology, energy security, and climate transition.

Domestically, key initiatives include the 2023 amendments to the Mines and Minerals (Development and Regulation) Act, aimed at enhancing private sector participation in exploring and mining critical minerals. These amendments simplify the auction process for mining rights and facilitate exploration of underutilized mineral reserves. India has also launched its first auction for critical minerals such as lithium and rare earth elements, aiming to reduce import dependency.

In 2024, the government introduced the Critical Minerals Mission, a focused initiative to coordinate efforts for securing access to critical minerals. This mission will enhance resource mapping, expedite exploration, and promote the development of resilient supply chains, ensuring India meets its long-term industrial and green energy goals. Finance Minister Nirmala Sitharaman emphasized the mission’s focus on acquiring overseas critical mineral assets.

As global demand for critical minerals escalates, securing resilient supply chains has become a geopolitical necessity. For India, international cooperation is essential not only for ensuring access to vital resources but also for establishing itself as a significant player in the global clean energy economy.

Related posts

Eagle’s Nest Project in Canada: A key nickel and copper initiative in Ontario’s ring of fire

David Lazarevic

Pan Asia Metals prepares for drilling at Rosario Copper Project in Chile

David Lazarevic

Chalice Mining’s Gonneville project in Australia granted major project status by Commonwealth Minister

David Lazarevic
error: Content is protected !!