Why in News :
The Quad nations (India, US, Japan, Australia) have launched the Quad Critical Minerals Initiative during their Foreign Ministers’ meet in Washington, DC, aiming to reduce dependence on China and secure critical mineral supply chains.
Key Highlights of the Initiative
Purpose & Objectives
- Ensure resilient, diversified, and secure supply chains for critical minerals essential to modern tech: semiconductors, EVs, defense systems, clean energy
- Address vulnerabilities arising from China’s monopoly over processing and refining of rare earth elements (REEs) and magnets (NdFeB).
Promote:
- Private sector investment
- Recycling of minerals from e-waste
- Policy coordination among Quad members
Strategic Relevance
- Builds on the G7 Critical Minerals Action Plan and supports the World Bank-led RISE Initiative.
- Follows China’s increasing export restrictions on rare earths and tech minerals, affecting global EV and defense industries.
- India’s EV sector already impacted due to denied permits from China for importing rare earth magnets.
India’s Role and Parallel Efforts
National Critical Mineral Mission
- Budget: ₹16,300 crore
- Focus: Exploration, overseas acquisitions, R&D, recycling
- Funding proposal under RISE initiative for international collaboration.
Other Alliances
- Minerals Security Partnership (MSP): Joined in 2023. Includes G7 + Australia, Finland, Sweden, South Korea.
- TRUST Initiative (2025): Indo-US agreement on strategic tech and mineral extraction—focus on lithium, rare earths, processing capacity building.
Geopolitical and Economic Implications
Supply Chain Fragility
- China has used its mineral monopoly as a geoeconomic weapon, e.g. curbing exports post US tariffs.
- Imposition of end-user verification and restrictions on Indian firms raises economic coercion concerns.
Indo-Pacific Regional Security
- Quad also launched “Ports of the Future” Partnership (Mumbai) and Indo-Pacific Logistics Field Training Exercise, reinforcing strategic maritime cooperation.
Challenges
- India still lacks processing infrastructure for critical minerals.
- Global supply chain realignment may take years and needs heavy investment and trust-building among Quad countries.
- China’s pricing power and technological lead in REE refining remain strong deterrents.
What are Critical Minerals?
Critical minerals are minerals essential for economic development, national security, and advanced technologies, but are marked by supply risks and strategic importance.
Key Features:
- High economic value
- Limited or concentrated global supply
- Vital for sectors like electronics, clean energy (EVs, solar), defense, and aerospace
India’s Critical Minerals List:
- As per the Ministry of Mines (Expert Committee report), 30 critical minerals have been identified as strategically important.
| UPSC Relevance: GS2 : International Groupings (Quad, G7), India’s foreign policy and resource diplomacy GS3 : Economy (Industrial policy, Rare earths), Environment (Resource recycling), Technology (EVs, Clean tech) Mains Practice Question Q. “The Quad Critical Minerals Initiative is not just an economic cooperation mechanism but a geopolitical necessity.” Discuss in light of India’s mineral dependencies and strategic interests. |