Context:
India has been invited to participate in a G7 meeting in Washington, D.C. focused on critical minerals, reflecting its growing importance in global supply chains and resource security frameworks.
Key Highlights:
- Diplomatic Engagement
- Meeting hosted by US Treasury Secretary Scott Bessent.
- Finance Ministers had earlier held a virtual meeting in December on the same issue.
- India’s invitation signals recognition of its strategic role in mineral supply chain diversification.
- Focus Areas of Discussion
- Reducing overdependence on single-source suppliers.
- Strengthening resilient and transparent supply chains.
- Promoting sustainable and responsible mining practices.
- Enhancing cooperation in processing, refining, and recycling critical minerals.
- Strategic Significance
- Critical minerals are vital for:
- Renewable energy technologies (solar panels, wind turbines).
- Electric Vehicles (EVs) and battery storage (lithium, cobalt, nickel).
- Semiconductors and electronics.
- Defence and aerospace applications.
- Growing global push to counter supply concentration risks (notably China’s dominance in processing).
Relevant Prelims Points:
- G7 (Group of Seven):
- Members: Canada, France, Germany, Italy, Japan, UK, USA.
- Informal intergovernmental forum of advanced economies.
- Critical Minerals:
- Essential for modern technology and economic security.
- Supply chains vulnerable to geopolitical disruptions.
- India’s initiatives:
- Critical Minerals Mission.
- Inclusion of key minerals under strategic mineral category.
- Minerals commonly classified as critical:
- Lithium
- Cobalt
- Rare Earth Elements (REEs)
- Graphite
- Nickel
Relevant Mains Points:
GS 2 – International Relations
- Reflects India’s rising role in minilateral groupings beyond traditional alliances.
- Strengthens India-US strategic partnership.
- Aligns with India’s Indo-Pacific engagement and Quad cooperation on critical technologies.
GS 3 – Economy
- Securing critical minerals crucial for:
- Energy transition goals.
- EV manufacturing ecosystem.
- Atmanirbhar Bharat in electronics and defence.
- Opportunity to:
- Attract foreign investment in mining and processing.
- Integrate into global value chains.
- Challenges:
- Environmental concerns in mining.
- Need for technology for refining and recycling.
- Resource diplomacy in Africa and Latin America.
- Way Forward
- Strengthen bilateral mineral partnerships (Australia, Africa, Latin America).
- Invest in domestic exploration and processing capacity.
- Develop strategic reserves of key minerals.
- Promote circular economy approaches (urban mining, battery recycling).
- Ensure ESG-compliant and community-sensitive mining practices.
UPSC Relevance:
Critical mineral security, Energy transition, Supply chain resilience, India’s role in global governance platforms, Economic security diplomacy.