An exploration of India’s minerals diplomacy

Context

• India’s clean energy transition (EVs, renewables, batteries, electronics) depends heavily on imported critical minerals and rare earth elements (REEs).

• China’s export controls on critical minerals have intensified global supply risks.

• India is pursuing diversification of supply chains, responsible mining, and standards-based markets.

Why Critical Minerals Matter

• Essential for solar panels, wind turbines, EV batteries, semiconductors, defence and electronics.

• India lacks sufficient domestic reserves and processing capacity.

• Supply chains are geopolitically sensitive and highly concentrated (China dominance).

India’s Strategy

Two-pronged approach:

1. Short-term: Secure overseas access through bilateral & multilateral partnerships.

2. Long-term: Build domestic mining, refining, and processing capacity.

• Over the last 5 years, India has entered ~12 international mineral partnerships.

• Domestic push through:

  • National Mineral Policy

  • Critical Minerals List

  • Strengthening PSUs like KABIL (Khanij Bidesh India Ltd.)

Regional Assessment of Partnerships

1. Australia – Most Reliable Partner

• Strengths: Political stability, large reserves, strategic alignment.

• India–Australia Critical Minerals Investment Partnership (2022):

  • Identified 5 lithium & cobalt projects.

• Cooperation includes:

  • Long-term supply

  • Joint R&D

  • Targeted investments

2. Japan – Model of Resilience

• Experience from China’s rare-earth export restrictions (2010).

• Strategy: Diversification, stockpiling, recycling, sustained R&D.

• Cooperation with Indian Rare Earths Ltd.

• New focus:

  • Joint extraction

  • Processing & stockpiling

  • Third-country cooperation

3. Africa – Strategic Opportunity

• Countries: Namibia (lithium, REEs, uranium), Zambia (copper, cobalt).

• Advantages:

  • Resource abundance

  • Historic India–Africa ties

• Challenge:

  • India must offer long-term industrial partnerships, not just extraction.

• Risk: Losing ground to China & Western competitors.

4. United States – Uncertain Partner

• Political intent but limited operational progress.

• Challenges:

  • Tariffs on Indian goods

  • Inflation Reduction Act (IRA) restrictions

  • Trade policy volatility

• Frameworks:

  • TRUST Initiative

  • Strategic Minerals Recovery Initiative

• Potential role: Technology & downstream innovation

5. European Union (EU)

• EU frameworks:

  • Critical Raw Materials Act

  • European Battery Alliance

  • Circular economy model

• Key requirement for India:

  • Align with ESG norms, transparency, lifecycle standards

6. West Asia (Gulf Countries)

• Countries: UAE, Saudi Arabia

• Focus:

  • Battery materials

  • Refining capacity

  • Green hydrogen

• Potential role:

  • Midstream processing hub

• Limitation:

  • Lack of deep institutional frameworks with India

7. Russia

• Strengths:

  • Large reserves of lithium, cobalt, REEs

  • Strong scientific ties

• Constraints:

  • Sanctions

  • Financing and logistics risks

• Role: Strategic hedge, not core supplier

8. Latin America – Emerging Frontier

• Countries: Argentina, Chile, Peru, Brazil

• Importance:

  • Copper, lithium, nickel, REEs

• India’s presence:

  • KABIL–Argentina ₹200 crore agreement

• Challenge:

  • Intense global competition

• Need:

  • Value-chain partnerships & local processing

9. Canada

• Resources: Nickel, cobalt, copper, REEs

• Recent development:

  • Trilateral agreement (India–Australia–Canada)

• Key factor:

  • Political stability in bilateral relations

Key Insight: Processing is the Real Chokepoint

• Mining alone is insufficient.

• India lacks:

  • Refining

  • Separation

  • Midstream capacity

• Overdependence on external processing increases vulnerability.

Challenges

• Over-reliance on announcements rather than implementation

• Weak domestic processing ecosystem

• ESG and sustainability concerns

• Fragmented global trade rules

• High competition from China and Western consortiums

Way Forward

• Deepen existing effective partnerships rather than expanding indiscriminately.

• Invest in:

  • Domestic refining & processing

  • Recycling & circular economy

  • Clean separation technologies

• Strengthen ESG frameworks, transparency & responsible mining.

• Ensure long-term certainty and technology transfer.

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