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Source: The post is based on the article “India joins US-led critical mineral club, boost likely for EV, electronics” published in Indian Express on 23rd June 2023
What is the News?
India has been inducted into the Mineral Security Partnership (MSP).
What is a Mineral Security Partnership (MSP)?
What is the significance for India joining the Mineral Security Partnership (MSP)?
One of the key elements of India’s growth strategy is powered by an ambitious shift in the mobility space through the conversion of a large part of public and private transport to electric vehicles.
This, alongside a concerted electronics manufacturing and semiconductor push, underlines the need to secure the supply of critical minerals.
Rare earth minerals in India:
Rare earth comprises 17 elements and is classified as light RE elements (LREE) and heavy RE elements (HREE).
Some REs are available in India such as lanthanum, cerium, neodymium, praseodymium, and samarium, while others such as dysprosium, terbium, and europium that are classified as HREE are not available in Indian deposits in extractable quantities.
Currently, there is an overwhelming dependence on countries such as China for HREE which is one of the leading producers of RE with an estimated 70 percent of the global production.
India-Australia Critical Minerals Investment Partnership:
Recently, India and Australia decided to strengthen their partnership in the field of projects and supply chains for critical minerals under the Australia-India Critical Minerals Investment Partnership.
In March 2022, Australia confirmed that it would commit USD 5.8 million to the three-year India-Australia Critical Minerals Investment Partnership.
Under this partnership, India can take resources from Australia to meet the growing demand for critical minerals to help India’s space and defence industries and the manufacture of electric vehicles.