Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
Context and Rationale
- India’s clean energy transition depends heavily on imported critical minerals and rare earths.
- China’s export controls have increased urgency to diversify mineral supply chains.
- India pursues a two-pronged strategy: domestic capability building and overseas access.
India’s Partnership Strategy
- Over the last five years, India has formed multiple bilateral and multilateral mineral partnerships.
- Objectives include diversification, responsible sourcing, and standards-based mineral markets.
- Outcomes vary, requiring recalibration and prioritisation of engagements.
Key Bilateral and Regional Partnerships
- Australia
- Considered a reliable partner due to political stability and large mineral reserves.
- India–Australia Critical Minerals Investment Partnership (2022) identified five lithium and cobalt projects.
- Cooperation includes joint research, investments, and long-term supply planning.
- Japan
- Demonstrates a resilience-based institutional model after past Chinese export restrictions.
- Cooperation expanded from Indian Rare Earths Limited to joint extraction, processing and stockpiling.
- Africa
- Rich mineral base combined with expectations of local value addition.
- Agreements with Namibia and asset talks in Zambia show renewed engagement.
- Requires a long-term industrial approach to remain competitive.
- United States
- Cooperation limited despite “friend-shoring” rhetoric.
- Tariffs, trade volatility, and Inflation Reduction Act incentives hinder stability.
- Frameworks include TRUST Initiative and Strategic Minerals Recovery Initiative.
- European Union
- Critical Raw Materials Act and European Battery Alliance integrate regulation with sustainability.
- India must align with transparency, lifecycle and environmental standards.
- West Asia
- UAE and Saudi Arabia investing in battery materials and refining capacity.
- Potential midstream processing partners, but institutional frameworks remain weak.
- Russia
- Holds significant reserves but faces sanctions, financing and logistics constraints.
- Useful as a diversification hedge, not a primary supplier.
- Latin America and Canada
- Argentina, Chile, Peru, Brazil emerging as new mineral frontiers.
- KABIL signed ₹200 crore agreement with Argentina.
- Canada offers promise but depends on political stability.
Way Forward
- Processing and refining are the main choke points, not ore access.
- India must integrate upstream, midstream and downstream partnerships strategically.
- Strengthening domestic ESG, transparency and responsible mining frameworks is essential.
