Critical minerals are essential elements used in a variety of high-tech industries, including electronics, renewable energy, and electric vehicles (EVs). They are crucial for the development of new technologies and sustainable energy solutions. Examples include lithium, cobalt, and rare earth elements.
2. WHY ARE CRITICAL MINERALS IMPORTANT FOR ELECTRIC VEHICLES (EVS)?
Critical minerals, especially lithium and cobalt, are vital for the production of lithium-ion batteries used in EVs. These batteries offer high energy density, long life, and efficient power storage, making them essential for the transition to electric mobility.
3. HOW DO CRITICAL MINERALS IMPACT ENERGY SECURITY?
Energy security involves having reliable and affordable access to energy resources. Critical minerals are key to ensuring this security as they are integral to the production of sustainable energy technologies, such as batteries for energy storage and EVs, reducing dependency on fossil fuels.
4. WHAT IS THE GLOBAL DISTRIBUTION OF CRITICAL MINERALS?
• Cobalt: Predominantly supplied by the Democratic Republic of Congo, which accounts for 70% of global production.
• Lithium: Australia is a major producer, supplying 55% of the world’s lithium, while China processes a significant portion of it.
• Rare Earth Elements: China dominates, holding 60% of global reserves and processing the majority of these elements.
5. WHAT ARE THE EXPECTED OUTCOMES OF DEVELOPING CRITICAL MINERALS?
• Economic Growth: Drives industrial development and innovation.
• Sustainable Future: Supports the transition to cleaner energy sources and reduces dependency on fossil fuels.
• Enhanced Energy Security: Ensures a reliable supply of essential minerals for sustainable energy technologies.
6. HOW WILL THE BUDGET 2024 IMPACT CRITICAL MINERALS AND SUSTAINABLE FUELS?
The Budget 2024 outlines strategic policies to promote the development and acquisition of critical minerals, aiming to support India’s transition to sustainable energy and electric mobility. This includes exemptions on customs duties for essential minerals, boosting manufacturing, and fostering collaborations with states and the private sector.
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