Critical Minerals as the Foundation of Strategic Power
Why in news
Recent policy analyses highlight critical minerals as central to industrial strategy, national security, clean energy, defence, and digital technologies. Published on August 4, 2026, assessments emphasize that with global supply chains heavily concentrated in specific geographic regions, access to raw and refined materials has transformed into a cornerstone of geopolitical power and economic sovereignty.
Prelims focus
- Definition: Critical minerals are non-fuel mineral elements essential for clean energy transition technologies, semiconductors, telecommunications, aerospace, and advanced defense systems.
- Refining Monopoly: China processes over 90% of global rare earths and graphite, nearly 75% of cobalt, and 70% of lithium chemicals.
- Supply Deficits: Current copper project pipelines point to a 30% global supply shortfall by 2035.
- India Demand: Cumulative demand for energy transition minerals under a Net-Zero 2070 scenario will reach roughly 169 million tonnes.
- KABIL Asset: KABIL secured 15,703 hectares in Argentina's Catamarca province for lithium exploration.
- National Mission: The National Critical Mineral Mission (NCMM) targets 1,200 domestic exploration projects by 2030-31.
- Trap: It is incorrect to assume India is completely devoid of raw mineral reserves; India possesses raw reserves of copper, graphite, and monazite, but lacks midstream processing capabilities.
- Trap: Critical minerals are not exclusively used for consumer electronics; they are critical inputs for national defense systems, aerospace, and clean energy infrastructure.
Mains analysis
Background
Critical minerals have rapidly gained geopolitical prominence due to their indispensable application in high-tech manufacturing, electronics, defence equipment, and renewable energy technologies such as electric vehicles and wind turbines. Policy analyses underline that clean energy transition, defence, and digital technologies drive the central role of these minerals in modern industrial strategy.
Significance
Control over the supply and processing of critical minerals underpins modern economic strength and strategic autonomy, reducing external vulnerabilities in global trade. Securing these minerals fuels clean energy transitions, powers high-tech semiconductor manufacturing, strengthens strategic defence and aerospace applications, and protects economic sovereignty against foreign export controls.
India-specific Implications
India's long-term demand surge under a Net-Zero 2070 scenario requires 169 million tonnes of energy transition minerals. However, India faces high import dependence for primary lithium, cobalt, and nickel, making supply weaponization by dominant producers a major risk to domestic EV gigafactories and manufacturing corridors.
Challenges and Criticisms
Global supply chains are concentrated in specific geographic regions, raising concerns over supply disruptions, price volatility, and geopolitical leverage. Domestically, India suffers from a lack of high-purity processing capabilities, shallow exploration depths, prolonged regulatory and environmental clearances, limited private sector participation, nascent recycling ecosystems, and challenging remote location economics.
Way Forward
Nations must diversify sourcing, invest in domestic exploration and processing capabilities, foster international partnerships, and promote recycling technologies. Key measures include prioritizing midstream refining through infrastructure status and production-linked incentives, establishing physical strategic reserves, de-risking private capital with geological data, accelerating closed-loop circular recycling under EPR, and deepening multilateral partnerships like the India-U.S. Strategic Critical Minerals Cooperation Framework and Quad initiatives.