Critical Minerals

• Critical minerals refer to natural resources that are vital for the economic security, technological advancement, and environmental sustainability of a country or region. 
• These minerals are essential for various industries, especially those related to advanced technologies, energy transition, and defence. 
• Due to their importance, securing a stable and sustainable supply of these minerals is crucial for national security and economic development.

Why are Critical Minerals Important?

Technological Advancements:

• Critical minerals are key components in many high-tech products like smartphones, computers, and renewable energy technologies (such as solar panels, wind turbines, and electric vehicle batteries).

Energy Transition:

• As the world shifts toward clean energy, minerals like lithium, cobalt, and rare earth elements become even more crucial for manufacturing electric vehicle batteries, solar panels, and energy storage systems.

National Security:

• Many critical minerals are used in defence technologies such as radar systems, missiles, and satellites. Countries rely on a steady supply of these minerals for military readiness and technological superiority.

Economic Stability:

• Nations with access to critical minerals can leverage these resources for economic growth, job creation, and industrial expansion. Countries that are import-dependent on critical minerals are vulnerable to supply chain disruptions.

Key Characteristics of Critical Minerals:

Essential for Modern Technologies:

• Critical minerals are indispensable in manufacturing products such as smartphones, electric vehicles (EVs), solar panels, wind turbines, and defence systems.

Limited Global Production:

• Many of these minerals are concentrated in specific regions, making their supply vulnerable to disruptions due to trade restrictions, natural disasters, or political instability.

Vulnerable to Geopolitical Factors:

• Countries that dominate the production of critical minerals can create supply constraints by imposing export bans, tariffs, or other trade restrictions, affecting global markets and access to essential resources.

Examples of Critical Minerals:

• Critical minerals include a variety of elements used in cutting-edge technologies:

Lithium:

• Vital for electric vehicle (EV) batteries and energy storage systems.

Cobalt:

• A key component in lithium-ion batteries used in EVs and mobile devices.

Nickel:

• Used in batteries, stainless steel, and various industrial applications.

Copper:

• Essential for electric wiring, electronics, and renewable energy technologies.

Rare Earth Elements (REEs):

• Critical for high-performance magnets, wind turbines, smartphones, and defence systems.

Challenges in Securing Critical Minerals

Supply Chain Disruptions:

• Geopolitical tensions, trade barriers, and natural disasters can disrupt the global supply chains of critical minerals. For instance, China’s dominance in the rare earth market poses a risk for countries that rely on these minerals for their technology and defence sectors.

Environmental Impact:

• Mining critical minerals can have significant environmental consequences, including habitat destruction, water contamination, and greenhouse gas emissions. Sustainable mining practices are essential to mitigate these impacts.

Resource Scarcity:

• As demand for critical minerals grows, there are concerns about the finite nature of these resources. Some minerals, like rare earths, are found in limited quantities, and over-extraction can deplete reserves.

Dependence on Foreign Suppliers:

• Countries that are heavily dependent on foreign sources for critical minerals are vulnerable to market fluctuations, supply disruptions, and geopolitical conflicts. Diversifying sources and establishing domestic mining operations are key strategies for enhancing supply security.

Global Distribution of Critical Minerals

• The global supply of critical minerals is concentrated in a few regions, which makes international trade and cooperation essential. For example:
• China is the world’s leading supplier of many rare earth elements and dominates the processing of these minerals.
• Australia is a major supplier of lithium, nickel, and rare earth elements.
• Democratic Republic of Congo (DRC) is a major source of cobalt.
• Chile and Argentina are significant sources of lithium.
• Russia and South Africa are key players in the supply of platinum group metals (PGMs) and manganese.

India's List of Critical Minerals

• The Government of India has identified 30 critical minerals, which are crucial for the nation’s economic growth, energy transition, and technological advancements. 
• These minerals are vital for various sectors, including manufacturing, electronics, renewable energy, and defence. The list includes:
  • Antimony
  • Beryllium
  • Bismuth
  • Cobalt
  • Copper
  • Gallium
  • Germanium
  • Graphite
  • Hafnium
  • Indium
  • Lithium
  • Molybdenum
  • Niobium
  • Nickel
  • Platinum Group Elements (PGE)
  • Phosphorus
  • Potash
  • Rare Earth Elements (REE)
  • Rhenium
  • Silicon
  • Strontium
  • Tantalum
  • Tellurium
  • Tin
  • Titanium
  • Tungsten
  • Vanadium
  • Zirconium
  • Selenium
  • Cadmium