PM Modi's State Visit to the US Explores India's Participation in Critical Mineral Alliance

Exploring India's Role in a Global Critical Mineral Alliance 

During his state visit to the United States, Prime Minister Narendra Modi is expected to engage in discussions regarding India's potential participation in a global alliance led by the US, specifically focused on critical minerals.

Last year, the United States, along with the European Union and other G7 partners, formed the Minerals Security Partnership to safeguard the global supply of essential minerals and mitigate China's growing dominance in this sector.

Addressing the Growing Demand for Critical Minerals

Significance in Clean Energy, Semiconductors, and Telecom Technologies

The demand for critical minerals, which are vital for clean energy, semiconductors, and telecom technologies, is projected to surge in the coming decades. Recognizing the importance of these minerals in driving technological advancements, various departments, including the Ministry of Finance, have initiated discussions with the Ministry of External Affairs to explore India's potential participation in the global alliance.

An official stated that preparatory talks on this subject will be conducted during the Prime Minister's visit. As India establishes new manufacturing verticals, the need for sourcing critical minerals in substantial quantities will become crucial. Ensuring diversified supply sources and reducing dependence on any single country is expected to be a key challenge for India in the future.

India's Motivation to Join the Alliance

Access to Investments and Advancing the Value Chain

India aims to become a part of the critical mineral alliance to leverage the investment opportunities offered by advanced economies, both from the government and private sectors. Participation in the alliance will enable India to gain access to investment in mining, processing, and recycling development while adhering to high environmental and social-governance standards.

This collaboration throughout the entire value chain will support India's pursuit of sustainable and responsible mineral sourcing.

The Role of Lithium in India's Energy Transition

Driving the Demand for Lithium-ion Batteries

One of the key minerals under consideration for India's involvement in the alliance is lithium. Lithium plays a pivotal role in India's energy transition goals, particularly in the production of lithium-ion (Li-ion) batteries used in electric vehicles and battery storage systems.

The demand for Li-ion batteries in India has been substantial, with imports amounting to US$2.8 billion in 2022-23. By participating in the alliance, India seeks to secure a sustainable supply of lithium and enhance its position in the global clean energy transition.

Earlier this year, India and Australia announced their plans to expand cooperation on mineral projects and develop safe supply chains for critical minerals. This bilateral collaboration further supports India's endeavors to establish secure and reliable sources of essential minerals.

Conclusion

PM Modi's state visit to the US includes discussions on India's potential participation in a critical mineral alliance. By joining the alliance, India aims to secure investment and ensure a sustainable supply of critical minerals, with a particular focus on lithium for its energy transition goals.