Critical minerals shape global power and conflicts

Source: The post Critical minerals shape global power and conflicts has been created, based on the article “The strategic race India can’t lose” published in “Indian Express” on 27th February 2025.

UPSC Syllabus Topic: GS Paper2- International Relations-Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Context: The article discusses how critical minerals like lithium and rare earths are now as important as oil for global power. The U.S. wants to secure these minerals, especially from Ukraine. India must reduce its import dependence by boosting domestic exploration and production.

For detailed information on Critical Minerals read this article here

How Do Critical Minerals Shape Global Conflicts?

1. New Geopolitical Power: Critical minerals like lithium, cobalt, and rare earths are as influential as oil in global politics. They are essential for electric vehicles, renewable energy, and semiconductors.
2. U.S. Oil Strategy vs. Mineral Dependency: The U.S. once depended on oil imports but became self-sufficient. Today, it faces a bigger challenge—import dependence on critical minerals, with China controlling 75% of rare earth reserves.
3. Russia’s War Power: Russia sustains prolonged wars due to its self-sufficiency in oil and gas. Europe’s dependence on Russian energy limits its response to the Ukraine war.
4. U.S. and Ukraine’s Resources: Ukraine holds one-third of Europe’s lithium reserves and top-five global graphite reserves. The U.S. sees Ukraine as a key resource partner to reduce reliance on China.
5. India’s Vulnerability: India imports more critical minerals than oil. It must boost domestic exploration to avoid strategic dependence.

How is the U.S. Securing Critical Minerals?

1. The U.S. is securing mineral sources to reduce dependence on China.
2. Ukraine has one-third of Europe’s lithium reserves and is rich in graphite and rare earths. The war increases U.S. leverage over Ukraine’s resources.
3. Donald Trump showed interest in Greenland and Canada due to their mineral wealth.
4. The U.S. fears losing its edge in electric vehicles, AI, and military technology without secure mineral access.
5. It aims for zero dependence on unfriendly nations for critical minerals.

What Should India Do to Reduce Its Dependence?

1. Increase Domestic Exploration: India has a rich geology with significant potential for critical minerals. Liberalizing exploration policies will encourage discoveries and monetization.
2. Develop Manufacturing: Transition from importing components to manufacturing them domestically, especially for batteries and renewable energy infrastructure.
3. Secure Overseas Assets: Actively pursue and sign supply agreements with countries that are friendly to India, to ensure a steady supply of critical minerals.
4. Utilize Existing Resources: India should tap into its large reserves of lithium and rare earths, as demonstrated by Ukraine’s strategy to leverage its mineral wealth.

Question for practice:

Examine how critical minerals are shaping global power dynamics and influencing the geopolitical strategies of major nations.