Mineral Security Partnership (MSP)

GS 3 – Economy 

The Mineral Security Partnership (MSP) is an initiative launched to strengthen critical mineral supply chains and reduce dependency on a single source or country for essential minerals. It addresses the increasing demand for critical minerals used in clean energy technologies, electric vehicles, electronics, and defense industries.

• Critical minerals like lithium, cobalt, nickel, rare earth elements, etc., are vital for energy transition and emerging technologies.
• Global supply chains for these minerals are dominated by a few countries, creating a monopoly and raising concerns about security of supply.
• The MSP was launched in June 2022 by the United States in collaboration with other partner countries to ensure diversified and resilient supply chains for critical minerals.

Key Objectives of MSP

1. Diversify Supply Chains:
   • Reduce dependency on any single country for critical minerals.
2. Secure Supplies for Clean Energy Transition:
   • Ensure access to minerals necessary for clean energy technologies like solar panels, wind turbines, and electric vehicle batteries.
3. Promote Investment:
   • Encourage private sector investments in responsible mining and production of critical minerals.
4. Reduce Environmental and Social Impact:
   • Focus on sustainable mining practices and adherence to environmental standards.
5. Strengthen Partnerships:
   • Build partnerships with resource-rich countries to create transparent and resilient supply chains.

Members of the MSP

The MSP includes 13 countries as key partners:

1. United States
2. Australia
3. Canada
4. France
5. Germany
6. Japan
7. South Korea
8. United Kingdom
9. Italy
10. Finland
11. Sweden
12. European Union
13. India (joined in June 2023)

Significance for India

India’s inclusion in the MSP is crucial due to the following reasons:

1. Energy Transition Goals:
   • India aims to achieve net-zero emissions by 2070 and relies heavily on critical minerals for clean energy technologies.
2. Atmanirbhar Bharat:
   • MSP aligns with India’s vision of becoming self-reliant in the supply of critical minerals.
3. Securing Resources:
   • India can access diversified sources of minerals like lithium, cobalt, and rare earths, reducing its import dependence.
4. Economic Growth:
   • Partnerships can boost investments in India’s mining and processing sectors, creating jobs and revenue.
5. Reducing China Dependency:
   • China dominates the global critical mineral supply chain. MSP helps India reduce reliance on China.
6. Technological Collaboration:
   • India can collaborate with developed nations to adopt advanced and sustainable mining technologies.

Key Critical Minerals

The MSP focuses on minerals critical for clean energy technologies and advanced industries, including:

1. Lithium (used in EV batteries)
2. Cobalt (for high-performance batteries)
3. Nickel (used in stainless steel and batteries)
4. Graphite (for battery anodes)
5. Rare Earth Elements (used in magnets, electronics, and defense equipment)
6. Copper (for electrical components and wiring)

Challenges

1. Geopolitical Tensions:
   • Existing dominance of China in critical mineral supply creates challenges for diversification.
2. Limited Resources:
   • Resource-rich countries may face political instability or lack infrastructure for large-scale mining.
3. Environmental Concerns:
   • Mining activities often lead to deforestation, water pollution, and ecological degradation.
4. Technology and Investments:
   • Developing sustainable extraction technologies requires significant investments.
5. Global Competition:
   • Competing interests among countries for limited resources can lead to conflicts.

Way Forward for India

1. Strengthen Domestic Mining:
   • Promote exploration and production of critical minerals through the National Mineral Exploration Policy.
2. Strategic Partnerships:
   • Collaborate with MSP countries to access resources and technologies.
3. Focus on Recycling:
   • Develop facilities for urban mining and recycling of e-waste to recover critical minerals.
4. Sustainability Standards:
   • Ensure eco-friendly and socially responsible mining practices.
5. Develop Processing Capabilities:
   • Invest in critical mineral processing and refining facilities to reduce import dependency.

India’s inclusion in the Mineral Security Partnership marks a significant step towards securing critical minerals for its energy transition and economic growth. By fostering international collaborations, investing in domestic capabilities, and promoting sustainability, India can emerge as a key player in the global critical mineral supply chain.