India’s mineral diplomacy

Source: The post India’s mineral diplomacy has been created, based on the article “India’s firmer attempts at mineral diplomacy” published in “The Hindu” on 16th December 2024

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 India’s efforts to secure critical minerals for its manufacturing and technology sectors. It highlights India’s partnerships with other countries, government initiatives like KABIL, and the need for stronger private sector involvement, diplomatic capacity, and sustainable partnerships to improve mineral security. India’s mineral diplomacy

For detailed information on Critical Mineral Mission of India read this article here

Why are critical minerals important for India?

Critical minerals like lithium and cobalt are essential for manufacturing and technology sectors, especially for renewable energy and batteries. India imports most of its critical minerals, making it dependent on countries like China. This dependence raises strategic concerns.

What is India’s strategy for mineral security?

India is adopting mineral diplomacy with two key pillars:

1. Bilateral engagement with resource-rich countries: Building partnerships with countries like Australia, Argentina, Kazakhstan, and the U.S. India formed Khanij Bidesh India Ltd. (KABIL) in 2019 to secure mineral supplies.
2. Global cooperative engagements: Collaborating with multilateral groups like the Quad, G-7, and the Mineral Security Partnership (MSP). Aligning with global best practices for critical mineral supply chains.

What are India’s achievements in mineral diplomacy?

1. Australia Partnership: Signed a critical mineral investment partnership in 2022, identifying two lithium and three cobalt projects.
2. Latin America Engagement: In 2024, signed a $24 million lithium exploration agreement with Argentina for five lithium brine blocks; exploring assets in Bolivia and Chile.
3. Kazakhstan Collaboration: Formed IREUK Titanium Limited, a joint venture to produce titanium slag, marking the first collaboration with Central Asia.
4. Private Sector Involvement: Altmin Private Limited partnered with Bolivia’s YLB to secure lithium-ion battery materials.
5. Global Engagement: Signed an MoU with the International Energy Agency to align policies with global standards.

What are the challenges in India’s mineral diplomacy?

1. Limited private sector involvement: No clear roadmap for private companies to participate in the critical mineral supply chain.
2. Weak diplomatic capacity: Lack of a dedicated division for mineral diplomacy in the Ministry of External Affairs.
3. Lack of sustainable partnerships: India’s partnerships with EU, South Korea, and Quad nations need strengthening to leverage technological and diplomatic support.

What steps can strengthen India’s mineral security?

1. Involve private sector: Develop a critical mineral supply chain strategy that includes private companies.
2. Enhance diplomatic capacity: Create a dedicated mineral diplomacy division within the Ministry of External Affairs.
3. Forge trusted partnerships: Collaborate more with technologically advanced countries like South Korea and the EU.

Question for practice:

Examine the challenges faced by India in ensuring mineral security and the steps needed to overcome them.