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India plans to auction 19 blocks of critical minerals to enhance domestic supply and reduce import dependence.
This initiative is a direct response to global supply chain disruptions and geopolitical uncertainties impacting mineral availability.
The move follows incidents like China's halt on rare earth magnet exports, highlighting vulnerabilities in strategic sectors.
Critical minerals are vital for advanced technologies, renewable energy, and national security applications.
Critical minerals are those essential for economic development and national security, whose supply chains are vulnerable to disruption. Their scarcity, geopolitical concentration of production, or processing bottlenecks pose significant risks. Examples include Lithium, Cobalt, Nickel, Graphite, and Rare Earth Elements (REEs). REEs are a group of 17 metallic elements crucial for high-tech applications like permanent magnets, lasers, and advanced electronics. China currently dominates the global production and processing of many REEs, giving it significant leverage in global supply chains.
Simple Analogy: Think of critical minerals as the 'vitamins' for a country's high-tech industries and defence. Just as a body needs specific vitamins to function optimally, modern economies need these minerals. If the supply of these 'vitamins' is controlled by a few external sources, the country's health (economy and security) becomes vulnerable.
The auction directly supports the goal of self-reliance by reducing import dependence for crucial raw materials.
Critical minerals like Lithium, Cobalt, and REEs are fundamental components for electric vehicles, solar panels, and wind energy systems, driving India's renewable energy goals.
Control over critical mineral supply chains is a significant geopolitical tool, influencing international trade and strategic alliances.
Ensuring domestic availability of raw materials is crucial for boosting local manufacturing and attracting investments in high-tech sectors.
GS-III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Infrastructure: Energy, Ports, Roads, Airports, Railways etc. Investment models. GS-II: International Relations - Effect of policies and politics of developed and developing countries on India’s interests.
General Awareness: Economy, Current Affairs, Science & Technology.
General Awareness: Economic news, Government policies, International events.
General Awareness: Current Affairs, Indian Economy.
General Knowledge: National Security, Strategic importance of resources.
High and increasing, given global focus on energy transition and resource nationalism.
Minerals vital for economic and national security, prone to supply disruptions.
A group of 17 metallic elements crucial for high-tech applications, often dominated by China in production.
A US-led initiative to secure critical mineral supply chains, which India joined.