Key Terms & Concepts — UPSC Mains
Critical Minerals
"Minerals deemed essential for modern technology and clean energy transition, with high economic importance and supply risk"
Critical minerals are raw materials that are economically important for key industries and have a high risk of supply chain disruption. They are defined by two characteristics: (1) they are essential for modern technologies — especially clean energy, defence, telecommunications, and semiconductors; and (2) their supply is concentrated in a few countries, making them geopolitically sensitive. Countries worldwide are identifying their own critical minerals lists as the clean energy transition drives unprecedented demand for these inputs.
Rapidly rising in UPSC relevance. India released its Critical Minerals List (2023) — 30 minerals identified. Questions can appear in GS3 (Economy, Environment, S&T), GS2 (India's external affairs, strategic interests), and even Essay. The global race for critical minerals is reshaping geopolitics.
- 1 India's Critical Minerals List (June 2023) — 30 minerals including Lithium, Cobalt, Nickel, Graphite, Titanium, Vanadium, Tellurium, Selenium, Gallium, Germanium
- 2 Mines and Minerals (Development and Regulation) Amendment Act, 2023 — opened up 6 atomic minerals (including Lithium) for commercial mining by private sector
- 3 Khanij Bidesh India Ltd (KABIL) — joint venture of NALCO, HCL, and MECL — mandated to acquire strategic mineral assets abroad
- 4 KABIL signed MoUs with Argentina and Australia for lithium and cobalt; exploration underway in Chile and Australia
- 5 India's first lithium reserves found in J&K's Reasi district (2023) — estimated 5.9 million tonnes (world's 5th largest)
- 6 Global concentration — China dominates processing: 60% of lithium processing, 73% of cobalt refining, 87% of rare earth processing
- 7 Critical minerals essential for EV batteries (lithium, cobalt, nickel, manganese, graphite), solar panels (silicon, silver, tellurium), wind turbines (rare earths for magnets), semiconductors (gallium, germanium)
- 8 Mineral Security Partnership (MSP) — US-led grouping (India joined in 2022) to diversify critical mineral supply chains away from China
- 9 Critical Minerals Summit held alongside G20 India Presidency (2023)
India's transition to 500 GW of renewable energy by 2030 requires massive quantities of critical minerals: each GW of solar capacity needs ~4 tonnes of silver, while electric vehicle manufacturing requires lithium-ion batteries containing cobalt and lithium. Without securing these supply chains, India's clean energy goals remain vulnerable.