India’s reliance on China for critical minerals?

India’s reliance on China for critical minerals?

Static GK   /   India’s reliance on China for critical minerals?

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The Hindu: Published on 24th Dec 2024:

 

Why in News? 

The Ministry of Mines has identified 30 critical minerals essential for India’s economic and national security. However, India’s significant dependency on China for certain critical minerals has raised concerns, particularly as China strategically dominates this sector globally.

 

Critical Minerals for India:

India identified 30 critical minerals crucial for its industries, including semiconductors, EV batteries, aerospace, and solar technologies.

For 10 of these minerals, India is entirely dependent on imports, highlighting a pressing need for domestic capabilities.

World’s Largest Mining Nation

 

China's Dominance:

China, with 173 types of minerals, has achieved unparalleled control in mining and refining.

In 2022, China invested $19.4 billion in exploration, discovering 132 new mineral deposits, including 34 large ones.

 

Controls refining processes globally:

Rare Earths: 87%

Lithium: 58%

Silicon: 68%

 

China’s Export Controls:

Strategic Restrictions:

Targets minerals critical to Western nations, particularly for high-tech industries.

Examples: Rare earth embargo on Japan (2010), restrictions on antimony, gallium, and germanium, and the December 2023 ban on rare earth technologies.

 

Calculated Approach:

Avoids disrupting domestic industries or minerals reliant on Western imports.

Is India Dependent on China?

India’s reliance on China exceeds 40% for several critical minerals:

Bismuth: 85.6%

Lithium: 82%

Silicon: 76%

Titanium: 50.6%

Tellurium: 48.8%

Graphite: 42.4%

 

Reasons for dependency:

Lack of domestic processing technologies.

Dependence on China’s established refining capabilities.

Why Has India Not Excavated Lithium Reserves in J&K?

 

Challenges:

Recently discovered reserves (5.9 million tonnes in clay deposits) require advanced extraction technology, which India lacks.

High-risk investments and inadequate private sector participation deter development.

 

Conclusion:

India is actively diversifying its supply chains and reducing dependency on China through initiatives like:

KABIL: Securing overseas mineral assets.

Strategic partnerships like the Minerals Security Partnership and the Critical Raw Materials Club.

Promotion of recycling and a circular economy.

Despite these steps, transitioning away from China will demand sustained investments, enhanced policies, and technological development.

This analysis captures the key aspects of the issue and the proposed way forward for India.

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