PM Modi’s US visit: India’s entry into critical mineral alliance on table

Prime Minister Mr. Narendra Modi’s state visit to the United States is expected to include discussions about India’s probable participation in a global alliance led by the United States on key minerals.

Last June, the United States, the European Union, and other G7 partners formed the Minerals Security Partnership to ensure that China does not further tighten its grip on important mineral supplies around the world. Several departments, including the Ministry of Finance, have contacted the Ministry of External Affairs to discuss India’s participation in the collaboration.

These minerals are critical for clean energy, semiconductors, and telecom technologies, and their demand is expected to skyrocket in the next decades.

An official stated, “The issue will be discussed during the Prime Minister’s visit. Officials will explore preparatory talks on the subject. As newer manufacturing verticals are established in India, sourcing many critical minerals in large volumes will become necessary. We expect dependence on any one country to become a key challenge then”.

India wants to be a part of the alliance because it will help it gain access to investment from both government and private sectors in advanced economies for key opportunities throughout the entire value chain.

The United States has stated that participating countries will pursue investment in mining, processing, and recycling development that adheres to high environmental and social-governance standards.

One of the minerals under consideration is lithium, which is essential to drive India’s energy transition goal. It is an important ingredient in the production of lithium-ion (Li-ion) batteries, which are used in electric vehicles and battery storage. In 2022-23, imports of Li-ion batteries totaled US$ 2.8 billion.

Earlier this year, India and Australia announced plans to expand their cooperation on mineral projects and create safe supply chains for essential minerals.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.