India is strategically engaging in critical mineral clubs like the Quad to secure and diversify supply chains for green industries. These collaborations mitigate risks from China, provide access to technology and finance, and enable India to balance international partnerships with its "Make in India" and "Atmanirbhar Bharat" self-reliance goals.
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The foreign ministers of the Quad countries — India, Japan, Australia and the US — announced the launch of the Critical Minerals Initiative or “clubs” for collaboratively “securing and diversifying” supply chains.
Critical minerals are vital raw materials that are fundamental to modern technology but face a high risk of supply chain disruption, because mining and processing of these minerals are heavily concentrated in a few countries, mostly China, which create geopolitical and economic vulnerabilities for importing nations like India.
India needs these minerals, like lithium for batteries or rare earths for magnets, to build electric vehicles (EVs), solar panels, and semiconductors. Without a steady supply, India cannot power its "green transition" and risks its economic future.
India has signed many agreements with resource-rich countries. For example, India has made deals with countries like Argentina and Zambia to help its government and companies explore and mine minerals overseas.
India also has partnerships with countries such as the UAE, the US, and the UK, to process and recycle minerals. However, these processing centers might not work well if India does not have a guaranteed, stable supply of the raw minerals in the first place.
"Critical mineral clubs" are small groups of like-minded countries that work together to secure and diversify their supply chains for these important minerals.
The Critical Minerals Initiative, launched by the Quad countries in July 2025, to strengthen and diversify critical mineral supply chains, including recovering minerals from electronic waste, and involves coordinating with private companies to encourage investment.
The Minerals Security Partnership (MSP), which India joined in June 2023. The MSP includes 14 countries and the EU, such as Australia, Canada, Japan, and the United States. This partnership aims to speed up the development of diverse critical mineral supply chains by bringing together governments and industries. They focus on projects ranging from mining to processing and recycling.
These clubs offer a unique solution. They allow India and its partners to combine their technical knowledge, financial resources, and diplomatic efforts to support new projects across the entire mineral journey, from finding them to making them ready for use. These groupings help Indian companies overcome financial challenges by providing access to a larger pool of money and advanced technologies from countries like Australia and Japan.
A risk exists that India might become only a place for storing, transporting, and basic processing of minerals, while other developed countries handle the more valuable steps like refining and manufacturing final products. India could remain a market for finished goods instead of becoming a major producer.
While these clubs discuss sharing scientific advancements and research, developed countries often hesitate to transfer their advanced technology and intellectual property rights (IPR) to developing countries like India.
India must prioritize building its own industrial capabilities and promoting scientific innovation. This involves negotiating clauses in agreements for investments in research and development (R&D) and academic exchanges.
It also needs to focus on making and scaling up its own refining, recycling, and clean-tech manufacturing, such as batteries and EVs, as part of a complete supply chain strategy. This aligns with India's "Make in India" and "Atmanirbhar Bharat" initiatives.
India has strong historical ties and growing influence with countries in Africa and Southeast Asia. Western countries want to work with India for mineral extraction because Indian businesses understand the local context better and have extensive networks there.
As India aims to become a global leader in green technology, it must remain dedicated to its own development principles, strategically engaging in the partnerships to create fair global supply chains, to ensure it does not become merely a source of raw materials or overly dependent on powerful country blocs. India wants to be a strong, independent player in the global mineral landscape, not just a follower.
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PRACTICE QUESTION Q. Consider the following statements in the context of the Critical Minerals: 1. They are always rare and have limited natural occurrence. 2. They are essential for the production of renewable energy technologies. 3. Recycling critical minerals is not feasible due to their complex composition. 4. They are exclusively mined from deep-sea mining operations. How many of the above statements are incorrect? A) Only one B) Only two C) Only three D) All four Answer: C Explanation: Statement 1 is incorrect: Critical minerals are not defined solely by their rarity or limited occurrence in nature. Critical minerals are identified based on their strategic importance to various industries and national security. Statement 2 is correct: Critical minerals are vital components used in the manufacturing of renewable energy technologies such as solar panels, wind turbines, and electric vehicle batteries. Statement 3 is incorrect: Recycling of critical minerals is not only feasible but increasingly necessary for sustainable resource management. Many critical minerals can be effectively recovered and reused from end-of-life products such as electronics, batteries, and magnets. Statement 4 is incorrect: Critical minerals are sourced from various mining operations, including terrestrial mining (such as open-pit mining and underground mining) and seabed mining. While deep-sea mining is a potential emerging frontier for certain minerals found in polymetallic nodules, ferromanganese crusts, and hydrothermal vents, the majority of critical minerals used today are extracted from terrestrial deposits. |
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