A missing link in India’s mineral mission, Pg9

Key Highlights:

• The Union Cabinet has introduced a ₹7,280 crore scheme for rare-earth magnets, recognizing the importance of domestic mineral processing.
• A new G-20 framework emphasizes value creation through refining and manufacturing of critical minerals.
• India imports almost all of its lithium, nickel, and cobalt, highlighting a vulnerability in domestic supply chains.
• China controls over 90% of global rare earths and graphite refining, creating a global chokepoint.
• India already mines and processes seven critical minerals, including copper, graphite, silicon, tin, titanium, rare earths, and zirconium, but refining lags in scale and quality.

Detailed Insights:

• Amendments to the Mines and Minerals (Development and Regulation) Act support domestic mining through exploration licenses and national auctions, but do not address refining capabilities.
• High-purity materials are crucial not only for clean energy but also for semiconductors, telecommunications, automobiles, pharmaceuticals, and defense systems.
• China's tightening of export controls on rare earth and battery technologies underscores the need for India to develop domestic processing capacity.
• The recently approved ₹1,500 crore critical minerals recycling scheme is a positive step towards scaling up processing and refining capacity.
• India can leverage its Centres of Excellence under the National Critical Mineral Mission to drive applied research in producing high-purity compounds.
• Unlocking secondary resources like coal fly ash, red mud, zinc residues, and steel slag can aid in recovering critical minerals.
• Training a skilled workforce in specialized hydrometallurgical and advanced refining techniques is essential for the critical minerals sector.
• Demand assurance and financing tools, such as government offtake commitments and price guarantees, can de-risk investment in the sector.
• Linking mineral diplomacy to processing capacity can shift global partnerships from buyer-seller deals to co-investment alliances.

Key Concepts Involved:

• Rare-Earth Magnets: Strong permanent magnets made from alloys of rare earth elements, crucial for various technologies.
• Critical Minerals: Minerals essential for modern technologies and economies, with supply chains vulnerable to disruption.
• Value Chain: The entire sequence of activities required to turn raw materials into a final product or service.