Source: The post India launches mission to secure critical minerals has been created, based on the article “Critical efforts: New critical minerals mission must engage private sector” published in “Business Standard” on 31st January 2025
UPSC Syllabus Topic: GS Paper3- Infrastructures
Context: The article discusses India’s new National Critical Mineral Mission. The government will invest ₹16,300 crore, with ₹18,000 crore from public-sector units. It aims to secure minerals like lithium for industries. China controls global supply chains. India must develop domestic resources and invest abroad.
For detailed information on Critical Mineral Mission of India read this article here
What is the National Critical Mineral Mission?
The Union Cabinet has approved the National Critical Mineral Mission. This mission aims to secure the supply of critical minerals. These minerals are essential for industries like batteries, semiconductors, and automobiles.
For detailed information on National Critical Mineral Mission read this article here
Why are critical minerals important?
- Essential for Key Industries: Critical minerals like lithium and molybdenum are used in batteries, semiconductors, and automobiles.
- Supply Chain Resilience: The pandemic showed how a shortage of semiconductors impacted India’s automobile sector.
- Global Dependency on China: China dominates the extraction and processing of critical minerals in Africa and Indonesia.
- Rising Demand and Prices: The International Energy Agency predicts prices of some critical minerals will increase 20-50 times by 2050. In the past, industries built fortunes on coal and petroleum. Now, companies can profit from critical minerals.
- Economic and Security Concerns: Without a secure supply, industries and energy security are at risk.
Does India have its own critical minerals?
- India has some reserves of critical minerals, but they are not fully explored. Many deposits are in politically sensitive areas or biodiversity hotspots.
- This makes extraction difficult. Recent auctions for exploration licences did not attract much interest from the private sector.
- Recent auctions for exploration licences saw low private sector interest.
- The government needs policy support and technology for better resource utilization.
- Khanij Bidesh India Ltd (KABIL) is focusing on lithium and cobalt, securing overseas partnerships in Argentina and Australia.
Conclusion
The mission’s success depends on how actively Indian companies participate. India must develop strong companies in this sector for its growth and energy security.
Question for practice:
Examine the significance of India’s National Critical Mineral Mission in securing essential resources for key industries and reducing dependency on China.
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