• The government of India will auction 21 critical mineral blocks as part of the fourth tranche worth Rs 83,000 crore ($9.94 billion) in more than six states.

• Ten out of these are blocks from previous tranches.

• India has been auctioning critical mineral blocks since November as part of efforts towards a clean energy transition.

What are Critical Minerals?

• Critical minerals are those where the risk of supply shortage could significantly impact the economy more than other raw materials.

• These minerals are crucial for economic development and national security. Their limited availability or concentration in specific regions can create vulnerabilities in global supply chains.

• Essential minerals include lithium, graphite, cobalt, titanium, and rare earth elements. These are vital for advancing sectors like high-tech electronics, telecommunications, transportation, and defense.

They are integral to strategic value chains such as:

• Clean technology initiatives like zero-emission vehicles, wind turbines, and solar panels.

• Information and communication technologies, particularly semiconductors.

• Advanced manufacturing inputs such as defense applications, permanent magnets, and ceramics.

Key facts about Critical Minerals:

1) Definition and Characteristics:

• A critical mineral is either a metallic or non-metallic element.

• It is essential for modern technologies, economies, or national security.

• There is a risk of disruption in its supply chains.

2) Changing Criticality: The criticality of minerals evolves over time as supply dynamics and societal needs change.

3) Applications:

• Critical minerals are crucial for manufacturing advanced technologies like mobile phones, computers, fiber-optic cables, semiconductors, and banknotes.

• They are essential for low-emission technologies such as electric vehicles, wind turbines, solar panels, and rechargeable batteries.

• Some are also vital for common products such as stainless steel and electronics.

4) Top Producers: Major producers of critical minerals include Chile, Indonesia, Congo, China, Australia, and South Africa.

5) Critical Minerals in India: India has identified 30 critical minerals, which are crucial for its economic and strategic interests.

• These minerals include Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, Platinum Group Elements (PGE), Phosphorus, Potash, Rare Earth Elements (REE), Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium, and Cadmium.

The 30 identified critical minerals are located in Bihar, Gujarat, Jharkhand, Odisha, Tamil Nadu, Uttar Pradesh, Chhattisgarh, and Jammu & Kashmir.

Initiatives taken by govt to promote production

1) Adopting a Robust Three-Stage Process in Identification:

First Stage: The panel reviewed strategies from various countries (Australia, USA, Canada, UK, Japan, and South Korea) to identify critical minerals.

Second Stage: Conducted inter-ministerial consultations to determine minerals crucial to different sectors.

Third Stage: Developed an empirical formula to evaluate mineral criticality, based on the EU methodology considering economic importance and supply risk.

2) Exploration Carried Out by Geological Survey of India

G3 Stage Exploration: Conducted during the 2020-21 and 2021-22 field seasons in Salal-Haimna areas of Reasi district, Jammu & Kashmir.

Lithium Resource Estimation: Identified an inferred resource of 5.9 million tonnes of lithium ore.

Future Exploration Plans: Additional exploration for various minerals, including lithium, will be undertaken in different regions, including Jammu & Kashmir.

3) Setting Up Khanij Bidesh India Ltd. (KABIL)

Mandate: To identify and acquire overseas mineral assets critical for strategic needs, such as lithium and cobalt, ensuring a stable supply.

Engagement: Initiated collaborations with state-owned organisations in source countries like Argentina and Australia, facilitated by the Ministry of External Affairs and Indian embassies, to acquire assets including lithium, cobalt, and rare earth elements.

(The author is a trainer for Civil Services aspirants.)