Source: The post India’s Strategic Role in Critical Mineral Partnerships has been created, based on the article “Minding the minerals gap” published in “Indian Express” on 10th July 2025
UPSC Syllabus Topic: GS Paper-1
Context: The Quad foreign ministers launched the Critical Minerals Initiative on July 3, aiming to diversify and secure mineral supply chains. This highlights India’s growing engagement in strategic mineral partnerships or “mineral clubs,” amid rising global tensions and a green technology race.
For detailed information on India aims to secure critical minerals for future growth read this article here
Why Critical Minerals Matter for India
- Dependency on China and Strategic Risks: India’s green industries depend heavily on China for rare earth magnets and other critical minerals. Recent export controls by Beijing exposed India’s vulnerability.
- Vital for Green Technologies: Critical minerals are essential for electric vehicles, solar panels, batteries, and semiconductors—key to India’s green transition.
- Delayed Entry and Domestic Constraints: India has untapped reserves but lacks the technological and financial capacity to exploit them, especially compared to global competitors.
India’s Bilateral and Multilateral Strategies
- Bilateral Mining Agreements Abroad: India has signed pacts with countries like Argentina and Zambia to facilitate exploration. However, Indian firms face hurdles in unstable regions due to lack of capital and technology.
- Joint Ventures for Processing and Recycling: Partnerships with the US, UK, and UAE focus on processing, but without secure supply, such hubs risk becoming stranded assets.
- Need for Long-Term Stability: Success of these ventures hinges on stable supply chains and long-term agreements embedded in broader strategies.
Role and Promise of Minilaterals or ‘Clubs’
- Collective Development and Resource Pooling: Minilaterals provide a platform to pool capital, technology, and diplomacy. India gains from joint projects and shared technical knowledge.
- Addressing Financial and Technological Gaps: Clubs like the Minerals Security Partnership allow co-financing and strategic project selection, helping overcome domestic limitations.
- Securing Supply Chains and Economic Sovereignty: These partnerships reduce risks, improve resilience, and help India diversify its critical mineral sources.
Caution in Engagement and Strategic Autonomy
- Risk of Becoming a Processing Hub Only: India could be limited to transit and processing roles, with high-end activities retained by developed countries.
- Need for Technology Transfer and R&D Focus: India must negotiate for R&D investment, academic exchange, and innovation support to build domestic capability.
- Ensuring Policy Safeguards and Access Terms: India should push for clear, reciprocal terms to avoid supply disruptions due to protectionist policies or regime changes.
Aligning with Global and Domestic Priorities
- Leveraging Make in India and Atmanirbhar Bharat: India aims to be self-reliant and competitive in green tech and critical minerals, supporting an export-oriented approach.
- Shaping ESG Norms and Global Standards: By joining clubs, India can influence ESG frameworks to reflect the Global South’s needs and enhance domestic practices.
- Championing the Global South: India’s links with Africa and Southeast Asia, backed by diaspora and business familiarity, can help balance great power dynamics.
Conclusion
To emerge as a green power, India must uphold developmental values while building inclusive, fair, and strategic global value chains.
Question for practice:
Examine how India’s participation in mineral clubs helps address its critical mineral challenges while balancing domestic priorities and global partnerships.
