Relevance: GS II (International Relations) & GS III (Economy, Energy Security) | Source: The Hindu / PIB
1. Context
Critical minerals (Lithium, Cobalt, Rare Earths) are the building blocks of the green transition (EVs, Solar panels). To break China’s global dominance in processing, India has adopted a “Two-Pronged Strategy”: building domestic refining capabilities and securing overseas assets via “Friend-Shoring”.
2. The “Mineral Web”: Key Strategic Partnerships
India is diversifying its supply chain through targeted bilateral agreements:
|
Partner |
Strategic Role & Key Developments |
| Australia | A reliable upstream partner. KABIL has identified 5 target projects for Lithium and Cobalt. |
| Argentina | Part of the “Lithium Triangle.” KABIL has signed a ₹200 Cr agreement for exploration and extraction. |
| Japan | Technology Partner. Crucial for the “Midstream” (Processing) sector, helping India acquire technology to refine ores domestically. |
| USA | Strategic Ally. India joined the Minerals Security Partnership (MSP) to collaborate on supply chain resilience, though the US Inflation Reduction Act (IRA) poses trade hurdles. |
3. Strategic Shift: “Friend-Shoring”
India is moving beyond simple commercial deals to “Friend-Shoring”—limiting critical supply chains to allies and politically friendly nations. This ensures Strategic Autonomy and prevents geopolitical blackmail (weaponization of supply chains).
UPSC Value Box
|
Concept / Institution |
Relevance for Prelims |
| KABIL (Khanij Bidesh India Ltd) | A Joint Venture company of three Central PSUs (NALCO, HCL, MECL) under the Ministry of Mines. Mandate: To identify and acquire critical mineral assets overseas. |
| Minerals Security Partnership (MSP) | A US-led alliance (14+ countries and EU) that India joined in 2023. Goal: To catalyze public-private investment in critical mineral supply chains globally. |
| Critical Minerals | Minerals essential for economic development and national security that are vulnerable to supply chain disruption (e.g., Lithium, Cobalt, Nickel, Graphite). |
Q. With reference to India’s energy security, the term ‘KABIL’ (Khanij Bidesh India Ltd) is often seen in the news. Consider the following statements:
- It is a joint venture company created by the private sector to import rare earth minerals.
- It functions under the administrative control of the Ministry of External Affairs.
- Its primary mandate is to identify and acquire strategic mineral assets overseas.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Correct Answer: (b)
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