Institute for Energy Economics and Financial Analysis (IEEFA) Reports released “India’s Hunt for Critical Minerals” | Current Affairs | Vision IAS
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Institute for Energy Economics and Financial Analysis (IEEFA) Reports released “India’s Hunt for Critical Minerals”

Posted 29 Oct 2024

2 min read

IEEFA’s report examines five critical minerals - cobalt, copper, graphite, lithium and nickel - from perspectives of import dependency, trade dynamics, domestic availability, and global price fluctuations.

  • Report finds that India remains heavily reliant on imports for these critical minerals, with 100% external dependence for lithium, cobalt, and nickel.
  • India’s demand for critical minerals is expected to more than double by 2030.

About Critical Minerals

  • A mineral is labelled as critical when risk of supply shortage and associated impact on economy is (relatively) higher than other raw materials. 
This is a flow chart showing four main applications of critical minerals: renewable energy (like solar panels and batteries), electronics (semiconductors and devices), medical technology (MRIs and medical devices), and defense/aerospace (military equipment and aircraft components).

Concern related to Critical Minerals import dependence 

  • Strategic Vulnerability: Dependence on a few key suppliers, especially China.
  • Price Volatility: Fluctuations in global demand and supply may impact manufacturing cost and energy production.
  • Economic Implications: Rising import costs can erode India's competitiveness in global markets.
  • Renewable Energy Goals at Risk: High import could hinder India’s transition to clean energy and its electric vehicle ambitions.

Report Suggestions 

  • India must develop strategies to mitigate risks associated with mineral dependencies and foster domestic production.
  • Explore investment opportunities in resource-rich, friendly nations, like Australia, Chile, Ghana and South Africa. 

Measures taken by India 

  • Six minerals, including lithium etc., have been delisted from Mines and Minerals (Development and Regulation) Amendment Act, 2023 to encourage private sector investment in exploration and mining.
  • India- Australia Critical Minerals Investment Partnership.
  • Khanij Bidesh India Limited (KABIL) has been established to acquire overseas mineral assets.
  • Tags :
  • Critical Minerals
  • IEEFA
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