CLEAN ENERGY
1. Context
In light of its high import dependence on China, India is planning to bring out a policy framework and action plan for the exploration, processing, use and recycling of critical minerals in the country.
2. Key points
- Critical minerals, both primary and processed are key inputs in the production process of an economy.
- The framework aims at self-sufficiency across several sectors and achieving the objective of India's clean energy transition.
- The recent surge in demand for critical minerals across the world, owing to their strategic use in renewable and e-mobility has been threatening developing countries with clean energy transition projects on the anvil.
- The demand for these minerals will increase by two to three times the current trends by 2030, according to the International Energy Agency.
- Unequal distribution, potential supply disruptions, price volatility resulting from overseas dependency and the lack of alternatives for these resources intensify the stress on the global mineral market.
- It is furthered by insufficient investment in the entire value chain and a lack of efficient industrial practices for recycling and recovery.
3. India's green energy transition
- Critical minerals such as copper, lithium, nickel, cobalt and rare earth elements are key to clean energy technologies.
- China currently dominates the sector in terms of the concentration of deposits and processing industries.
- India is on track to becoming the next global leader in the green energy transition.
- The country has been projected to be the world's second-largest economy by 2050.
- India needs to actively engage and incorporate aspects of building a secured and resilient critical minerals supply chain.
- Scaling up the manufacturing of green technologies, including solar panels, wind turbines and batteries for electric vehicles, will result in significant demand and dependency on the supply of a range of critical minerals in future.
- Since these minerals, especially rare earth minerals are key to a low-carbon economy, stronger regulations on this front are vital to addressing the environmental and social impacts of mining and processing these minerals.
4. Disruption of the supply chains
- The Covid-19 pandemic, coupled with Russia's war on Ukraine, disrupted the supply chains of critical minerals.
- China, the most dominant player in the critical mineral supply chains, is still struggling with the Covid-19 lockdowns.
- As a result, the extraction, processing and exports of critical minerals are at risk of slowdown.
- On the other hand, Russia is a major producer of nickel, palladium, titanium, sponge metal and the rare earth element scandium.
- Ukraine, one of the major producers of titanium, also has reserves of lithium, cobalt, graphite and rare earth elements, including tantalum, niobium and beryllium.
- But the war between the two countries has disrupted global critical mineral supply chains.
- As the balance of power shifts across the continents, the critical mineral supply chains may get affected due to growing partnerships between China and Russia.
- Supply chain security for the minerals and materials needed in clean energy technologies has become a strategic issue in the past few years.
- Despite their potential to delay the pace of clean tech deployment, these minerals have now become the latest frontier for geo-economic rivalries.
- To ensure the mineral security of the country and to attain self-sufficiency, the Ministry of Mines has created a joint venture company, Khanji Bidesh India Ltd (KABIL).
- But the present policy regime reserves these minerals only for public sector undertakings.
- The country needs to encourage and incentivise the private players in the sector to venture globally in parallel with KABIL.
5. India's engagement with other countries
- India is currently a member of The Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development, which supports the advancement of good mining governance.
- Recently, India and Australia decided to strengthen their partnership in clean energy transition and create resilient supply chains for critical minerals.
- Australia committed $ 5.8 million to the three-year India-Australia Critical Minerals Investment Partnership.
- India must proactively engage with global players to secure its place in international partnerships on critical minerals.
- Last year, the United States formed the Minerals Security Partnership (MSP), a global alliance to reduce dependence on China.
- MSP is an ambitious new alliance comprising Australia, Canada, Finland, France, Germany, Japan, the Republic of Korea, Sweden, the United Kingdom, the US and the European Commission.
- The alliance intends to ensure that critical minerals are produced, processed and recycled in a manner that supports the ability of countries to realise the full economic and sustainable development benefit of their geological endowments.
6. The Way Forward
- India needs to actively engage with global players to secure its seat in MSP
- The processing technologies required for utilising critical and strategic minerals are not widely available in India.
- The country needs to use the vast network of scientific and technical Institutions to identify the necessary technologies and work on developing the same domestically.
- It can be achieved by partnering with global alliances and strengthening its case for becoming an active member of the MSP.
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For Prelims: MSP, Critical Minerals, India-Australia, Clean Energy, International Energy Agency, Covid-19 pandemic, Russia's war on Ukraine, Ministry of Mines,
For Mains:
1. What are Critical Minerals? Discuss the need for India to deepen its global partnerships on critical minerals. (250 Words)
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Previous Year Questions
1. Consider the following minerals: (UPSC 2020)
1. Bentonite
2. Chromite
3. Kyanite
4. Sillimanite
In India, which of the above is/are officially designated as major minerals?
A. 1 and 2 only B. 4 only C. 1 and 3 only D. 2, 3 and 4 only
Answer: D
2. Recently, there has been a concern over the short supply of a group of elements called 'rare earth metals.' Why? (UPSC 2012)
1. China, which is the largest producer of these elements, has imposed some restrictions on their export.
2. Other than China, Australia, Canada and Chile, these elements are not found in any country. 3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements.
Which of the statements given above is/are correct?
A. 1 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: C
3. With reference to India, consider the following statements: UPSC 2022
1. Monazite is a source of rare earth.
2. Monazite contains thorium.
3. Monazite occurs naturally in the entire Indian coastal sands in India.
4. In India, Government bodies only can process or export monazite.
Which of the statements given above are correct?
A. 1, 2 and 3 only B. 1, 2 and 4 only C. 3 and 4 only D.1, 2, 3 and 4
Answer: B
4. With reference to the management of minor minerals in India, consider the following statements: (UPSC 2019)
1. Sand is a 'minor mineral' according to the prevailing law in the country.
2. State Governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.
3. State Governments have the power to frame rules to prevent illegal mining of minor minerals.
Which of the statements given above is/are correct?
A. 1 and 3 only B. 2 and 3 only C. 3 only D. 1, 2 and 3
Answer: A
5. Consider the following minerals: (UPSC 2013)
1. Calcium
2. Iron
3. Sodium
Which of the minerals given above is/are required by the human body for the contraction of muscles?
A. 1 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: D
6. Among the following pairs of minerals and districts, which one is correctly matched?
(BPSC Combined Competitive Exam)
A. Limestone - Kaimur
B. Mica - Bhagalpur
C. Quartzite - Madhubani
D. Lead-zinc - Gaya
E. None of the above/More than one of the above
Answer: A
7. Match List - I with List- II and select the correct answer using the codes given below the lists: ( UPPSC 2016)
List – I (Centre) List – II (Minerals)
(A) Makum (i) Iron Ore
(B) Dallirajhara (ii) Coal
(C) Koraput (iii) Manganese
(D) Chitradurga (iv) Bauxite
1. (A) - (3), (B) - (2), (C) - (1), (D) - (4)
2. (A) - (2), (B) - (1), (C) - (4), (D) - (3)
3. (A) - (4), (B) - (3), (C) - (2), (D) - (1)
4. (A) - (1), (B) - (2), (C) - (3), (D) - (4)
Answer: 2
8. Match List I with List-II and select the correct answer using the code given below the Lists: (UPSC CAPF 2017)
List II (Mineral) List II (Mine)
A. Zinc 1. Amjhore
B. Gold 2. Sukinda
C. Chromite 3. Zawar
D. Pyrita 4. Hutti
1. A - 1, B - 2, C - 4, D - 3
2. A - 3, B - 2, C - 4, D - 1
3. A - 3, B - 4, C - 2, D - 1
4. A - 1, B - 4, C - 2, D - 3
Answer: 3
9. Which one of the following is the appropriate reason for considering the Gondwana rocks as most important of rock systems of India? (UPSC 2010)
A. More than 90% of limestone reserves of India are found in them
B. More than 90% of India's coal reserves are found in them
C. More than 90% of fertile black cotton soils are spread over them
D. None of the reasons given above is appropriate in this context
Answer: B
10. Consider the following statements: (UPSC 2013)
1. Natural gas occurs in the Gondwana beds.
2. Mica occurs in abundance in Kodarma.
3. Dharwars are famous for petroleum.
Which of the statements given above is/are correct?
A. 1 and 2 B. 2 only C. 2 and 3 D. None
Answer: B
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Source: The Down to Earth
