Critical minerals, the foundation of strategic power, Pg6

Key Highlights:

• Critical minerals like lithium, cobalt, nickel, graphite, copper, and rare earth elements are now central to industrial strategy and security, vital for electric vehicles, renewable energy, and advanced manufacturing.
• The global supply chain for these minerals is highly concentrated, with the top three refining countries holding an average market share of 86% in 2024.
• China dominates the refining of 19 out of 20 strategic minerals, possessing approximately 70% of the market share.
• India has identified 30 critical minerals and launched the National Critical Mineral Mission to enhance domestic exploration, processing, and reduce import dependence.
• Khanij Bidesh India Limited (KABIL) has secured five lithium blocks for exploration in Argentina's Catamarca province.
• The India-U.S. critical minerals and rare earths framework was signed in May 2026 to deepen cooperation across the supply chain.

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Detailed Insights:

• Decarbonization and digitalization are making mineral security as strategically important as oil security once was.
• The European Union Critical Raw Materials Act sets 2030 benchmarks for domestic extraction (10%), processing (40%), and recycling (25%), limiting single-country dependence to 65%.
• India's cumulative demand for critical energy transition minerals could reach approximately 169 million tonnes by 2070 under a net-zero scenario.
• Despite having domestic reserves of cobalt, copper, graphite, and nickel, India remains significantly import-dependent for lithium, cobalt, and nickel.
• The critical gap for India lies in developing midstream capacity for processing and refining high-purity critical mineral products.
• The National Critical Mineral Mission aims to complete 1,200 domestic exploration projects and acquire 50 overseas mining assets by Indian companies by 2030-31.
• The 2026-27 Budget proposed establishing dedicated rare earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to integrate mining, processing, and manufacturing.
• India needs to operationalize strategic stockpiles, accelerate applied research and development, and diversify overseas supply through trusted partners.

Key Concepts Involved:

• Critical Minerals: Minerals essential for modern technologies and economies, facing supply risks due to geological scarcity, geopolitical issues, or processing concentration.
• Decarbonization: The process of reducing or eliminating carbon dioxide emissions, especially from energy production, to mitigate climate change.
• Net Zero Scenario: A state where greenhouse gas emissions are balanced by their removal from the atmosphere, achieving no net increase in emissions.
• Supply Chain Realignment: The strategic restructuring of global supply networks to reduce dependencies and enhance resilience, often due to geopolitical or economic factors.