India & the Global Mineral Supply Chains: Key Takeaways
1. US-led MSP: PM Modi announces India's participation in the US-led Mineral Security Partnership (MSP) aimed at supporting critical mineral supply chains. It's a multi-country platform emphasizing collaboration around mineral production, processing, and recycling.
2. EV and Minerals: India's focus on Electric Vehicles (EV) production necessitates a robust supply of critical minerals, essential for battery production. Critical minerals, such as lithium, nickel, cobalt, are core components of EV batteries.
3. Geographical Challenge: Most critical mineral mining is consolidated in countries like Australia (lithium), Chile (copper, lithium), and China (graphite). China dominates the refining sector, making it a key player in the supply chain.
4. MSP's Potential for India: MSP offers India collaboration avenues to secure its mineral chains with partners like the US and Australia. It could boost India's domestic EV production and align with MSP's broader objectives.
5. Broadening Collaborations: Beyond lithium, joint efforts could focus on mining operations in countries like the Democratic Republic of Congo, Indonesia, and Peru, known for cobalt, nickel, and copper production.
6. Research & Skilling Opportunities: MSP offers chances for joint R&D in minerals, storage materials, and extraction methods. India can explore deep-sea extraction of minerals like lithium, aligning with its National Deep Oceans Mission.
7. Strategic Move for India: MSP participation boosts international cooperation, fostering innovation, and establishing responsible, sustainable supply chains. It's vital for India's manufacturing sectors and its role in shaping resilient, global mineral supply chains.
By actively participating in MSP, India can bolster its domestic capabilities, reduce mineral dependency, and play a crucial role in the global mineral supply chain landscape.
