India’s Big Push To Boost Critical Mineral Production, Cut Import Dependence - A Reason For China To Worry?

The move is aimed at strengthening India’s energy security and supply chain security as the elements are highly used in the country, especially in the electric vehicle, electronic manufacturing and strategic sectors.

In a move aimed at boosting the domestic production of critical minerals and reduce import dependence, the central government approved the rationalisation of royalty rates of graphite, caesium, rubidium, and zirconium.
The decision was taken by the Cabinet under the Chairmanship of Prime Minister Narendra Modi. The decision comes at a time when China, which holds the world monopoly in critical minerals production, is increasingly imposing export restrictions. India’s move to push domestic production will also cut down dependence on imports from Beijing.

Cabinet Approves Rationalisation of Royalty

Union Minister Ashwini Vaishnaw said after the Cabinet meeting that there was a need to change the royalty structure of few critical minerals as a very high royalty was imposed on them. The cabinet, he said, decided to reduce the royalty of caesium, graphite, rubidium and zirconium so that their production can be increased.

These four are important minerals for high-tech applications and energy transition. Graphite and zirconium are also among the 24 critical and strategic minerals listed in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).

India’s Big Push To Boost Domestic Production

The Cabinet’s decision will promote the auction of mineral blocks containing caesium, rubidium and zirconium, thereby not only unlocking these minerals but also associated critical minerals found with them such as lithium, tungsten, rare-earth elements (REE) and niobium, according to a PTI report.
The move is aimed at strengthening the country’s energy security and supply chain security as the elements are highly used in the country, especially in the electric vehicle, electronic manufacturing and strategic sectors. An increase in indigenous production of these minerals would lead to a reduction in imports and supply chain vulnerabilities and also generate employment opportunities in the country.

Usage of Graphite, Zirconium, Caesium & Rubidium

Graphite is a crucial component in electric vehicle (EV) batteries, primarily serving as the anode material, which enables high conductivity and charge capacity. Despite being such high-usage mineral , India imports 60 per cent of its graphite requirement.
At present, nine graphite mines are working in the country and further 27 blocks have been auctioned. Further, GSI and MECL have handed over 20 graphite blocks that will be auctioned and around 26 blocks are under exploration.

Source : https://www.timesnownews.com/india/indias-big-push-to-boost-critical-mineral-production-a-reason-for-china-to-worry-article-153143039