Meaning
Critical minerals are minerals that are:
- Essential for economic development, advanced technologies and national security.
- Characterised by high supply risk due to import dependence, limited domestic reserves, or geopolitical concentration.
- Difficult to substitute in key industrial applications.
In simple terms, a mineral becomes “critical” when it is both economically important and vulnerable to supply disruption.
Why Are They Important?
Critical minerals are foundational to modern economies and the energy transition. They are crucial in:
- Renewable energy technologies (solar panels, wind turbines).
- Electric vehicles and battery storage systems.
- Semiconductors and electronics.
- Defence equipment, aerospace and advanced manufacturing.
- Telecommunications and digital infrastructure.
Key Examples
India identified 30 critical minerals in 2023. Some major ones include:
- Lithium
- Cobalt
- Nickel
- Graphite
- Rare Earth Elements (REEs)
- Copper
- Silicon
- Titanium
- Tungsten
Globally, lithium, cobalt, rare earth elements and nickel are among the most strategically sensitive minerals.
Characteristics of Critical Minerals
- High economic significance.
- Limited geographical concentration of reserves.
- Heavy import dependence.
- Essential for clean energy and high-technology sectors.
- Long lead time for exploration and production.
For example, rare earth elements are heavily concentrated in a few countries, making supply chains vulnerable to geopolitical tensions.
Role in Energy Transition
Critical minerals are indispensable for:
- Solar photovoltaic cells (silicon, indium, tellurium).
- Wind turbines (neodymium, dysprosium).
- Lithium-ion batteries (lithium, cobalt, nickel).
- Grid-scale energy storage systems.
Without secure access to these minerals, countries cannot scale renewable energy or electric mobility.
Strategic Concerns
- Overdependence on a few supplier countries.
- Trade restrictions and geopolitical tensions.
- Environmental and social impacts of mining.
- Price volatility and market concentration.
Supply chain disruptions can directly affect clean energy targets, industrial production and defence preparedness.
India’s Approach
India has:
- Identified a list of critical minerals.
- Launched the National Critical Mineral Mission.
- Encouraged overseas asset acquisition.
- Promoted recycling and circular economy approaches.
- Strengthened exploration and domestic production efforts.
Conclusion
Critical minerals are the backbone of the green transition, digital economy and national security architecture. Ensuring their secure, diversified and sustainable supply is now a strategic priority for major economies, including India.
