Is China a dominant player?
China is the world’s largest mining nation, with vast resources in critical minerals.
Controls 87% of rare earth processing, 58% of lithium refining, and 68% of silicon processing.
Invested $19.4 billion in mineral exploration, discovering 132 new deposits.
Has strategic overseas mining projects, strengthening its global dominance.
What about China’s export controls?
China uses export controls to target minerals essential for Western tech industries.
Balances control of critical minerals to avoid disrupting its own economy.
Past actions include a rare earth embargo against Japan in 2010 and recent restrictions on antimony, gallium, and germanium exports.
December 2023: Banned rare earth extraction and processing technology exports.
Is India dependent on China?
India relies heavily on China for key minerals:
Bismuth (85.6%), Lithium (82%), Silicon (76%), Titanium (50.6%), Tellurium (48.8%), Graphite (42.4%).
Limited alternatives due to China’s control over refining and processing capabilities.
India faces supply constraints in vital sectors like EV batteries, semiconductors, and solar panels.
Why does India rely on imports?
India has significant mineral resources but lacks technology to extract and process them.
High-risk investments in exploration deter private sector participation.
Limited domestic processing capabilities, especially for lithium.
Structural issues in the mining sector and inadequate policy support.
What is the way forward?
India has set up KABIL, a joint venture to secure overseas mineral assets.
Participating in initiatives like the Minerals Security Partnership and Critical Raw Materials Club.
Investing in research through Geological Survey of India and CSIR.
Promoting recycling and circular economy to reduce dependency.
Production-linked incentives for critical mineral extraction through recycling.
Long-term investment and policy commitment required for reducing reliance on China.
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