Source: HT
Context: With an eye on reducing dependence on China, India and the US signed a memorandum of understanding (MOU) to expand and diversify the critical minerals supply chain at a bilateral commercial dialogue.
Origin and Nations involved:
- Countries involved: India and the United States signed a Memorandum of Understanding (MOU) aimed at expanding and diversifying critical mineral supply chains.
- This agreement is part of a broader effort to reduce dependence on China for critical minerals, which are essential for modern technology and clean energy transitions.
- Objective: The MOU aims to strengthen cooperation in areas like mineral exploration, extraction, processing, recycling, and recovery between India and the US.
Key Features:
- The agreement focuses on improving the resilience of the critical minerals sector by identifying equipment, policies, and best practices that both countries can adopt.
- It also emphasizes joint projects in third countries and cooperation in newer areas like semiconductors and clean energy.
- Both countries are working to create a sustainable supply chain for critical minerals like Rare Earth Elements (REEs), lithium, and others, given China’s dominance in the sector.
Initiatives taken by India:
- Planning Commission (now NITI Aayog): Highlighted the need for critical minerals for industrial growth, identifying 12 strategic minerals, including lithium, cobalt, and tungsten.
- Ministry of Mines: Set up a steering committee to review rare-earth elements and energy-critical elements. Studies on India’s mineral reserves were conducted to formulate a strategy.
- Geological Survey of India (GSI): Developed plans to enhance rare earth exploration, crucial for securing India’s mineral resources.
- Council on Energy, Environment, and Water (CEEW): Conducted studies identifying 13 minerals critical for India by 2030, essential for manufacturing and clean energy.
Dr. Veena Kumari Dermal committee:
- Objective: To assess the importance and supply risks of critical minerals using a three-stage process: international study, inter-ministerial consultation, and statistical analysis.
- Outcome: 30 minerals were identified as critical, based on factors like availability, substitutability, and supply risks, with two minerals categorized as crucial for fertilizers.
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