Why in the News?

The Quad has launched the “Quad Critical Minerals Initiative” to secure critical mineral supplies, addressing concerns over China’s price manipulation and coercive practices.

What is the Quad Critical Minerals Initiative?

Launch: The Quad Critical Minerals Initiative was launched during the second Quad Foreign Ministers’ Meeting held in Washington, DC.
Participants: The meeting was attended by the foreign ministers of India, the United States, Australia, and Japan.
Aim: To strengthen cooperation among Quad nations on building secure and diversified critical mineral supply chains.
Strategic Objectives:
- Reduced Dependency: It seeks to reduce reliance on any single country, particularly China, for the processing and refining of critical minerals.
- Risk Mitigation: The Quad statement emphasized that overdependence exposes nations to economic coercion, price manipulation, and supply chain disruption.

Need for such Initiative:

Chinese Supremacy: China dominates global mineral processing, controlling over 90% of rare earth refining, and 50–70% of lithium and cobalt refining.
Reserves Leadership: China holds the largest rare earth reserves at 44 million metric tons, far ahead of countries like India (6.9 MMT) and Australia (5.7 MMT).
Strategic Investments Abroad: China has acquired key mining assets in Africa, securing access to cobalt, lithium, and other critical minerals.
Supply Chain Leverage: With its monopolistic control, China can stall the global EV, battery, and renewable energy sectors through export restrictions.

India’s Strategy on Critical Minerals:

A. National Critical Minerals Mission (NCMM)

Launch and Funding: India launched the National Critical Minerals Mission in January 2025, backed by an allocation of ₹16,300 crore.
Core Objective: The mission aims to achieve self-sufficiency in critical mineral extraction and processing, thereby reducing import dependency.
Minerals Identified: The Indian government has identified 30 critical minerals including lithium, cobalt, graphite, tin, nickel, and copper as vital for economic and energy security.
Exploration Strategy: The NCMM promotes intensive exploration within Indian territory and offshore, and pushes for a fast-tracked approval mechanism for mining projects.
Energy Transition Goal: The mission supports India’s Net Zero by 2070 goal by ensuring timely access to raw materials for clean energy systems.

B. International Cooperation – MSP and MSFN

MSP Membership: India joined the Minerals Security Partnership (MSP) in June 2023, a 14-member initiative led by the United States and supported by the European Union.
Investment Facilitation: The MSP seeks to catalyse public-private investments and build shared capabilities in mining, refining, and supply chain infrastructure.
Financial Network (MSFN): India is also part of the Minerals Security Finance Network (MSFN), which focuses on co-financing strategic critical mineral projects globally.
Sourcing Diversification: Through these platforms, India is expanding its cooperation with resource-rich countries like Mozambique, Madagascar, Brazil, and Tanzania.

Significance for India:

Continued Import Dependence: Despite ongoing efforts, India remains heavily dependent on China, particularly for graphite and rare earth elements.
Long Project Timelines: A 2024 IEEFA report estimates that domestic mining operations may take over a decade to start production.
Rising Demand Pressure: India’s demand for critical minerals is expected to more than double by 2030, necessitating rapid action on exploration and supply diversification.
Need for Strategic Tie-ups: To secure future needs, India must accelerate global partnerships and develop domestic value chains from mining to processing.

[UPSC 2025] Consider the following statements:

I. India has joined the Minerals Security Partnership as a member. II. India is a resource-rich country in all the 30 critical minerals that it has identified. III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals.

Which of the statements given above are correct?

(a) I and II only (b) II and III only (c) I and III only* (d) I, II and III

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