Critical Minerals

Let us begin by asking a basic question:

What makes a mineral “critical”?

To understand this, imagine a scenario. You have a smart device—say a smartphone, or an electric vehicle (EV). Now, many of the parts inside this device depend on certain rare materials. These materials are not just “important”—they are critical. Why? Because:

1. They are essential for making modern technology.
2. And if their supply is disrupted, the impact will be huge—economically, technologically, and strategically.

Definition of Critical Minerals

“A critical mineral is a metallic or non-metallic element that is essential for modern technologies, economies, and national security, but whose supply is at risk of disruption.”

Let us now simplify it further:

• You can think of critical minerals as those raw materials which are:
  • Very important for a country’s economy, especially emerging technologies.
  • And yet, their supply chains are fragile—either due to limited availability or political/geographical reasons.

✳️ Technical Note:

Both primary minerals (naturally occurring) and processed minerals (those refined or purified) can be classified as critical.

Why Are They Called “Critical”?

Let’s now understand why we use the word “critical”. Think of two factors:

1. Risk of Supply Shortage — Are we likely to face scarcity or supply chain disruption?
2. Impact of That Shortage — Will it significantly affect our economy or technology?

🔁 When both risk and impact are high → The mineral becomes “critical”.

Supply Chain Vulnerability

Now, here’s another important aspect:

Most critical minerals are not evenly distributed across the world.

For instance:

• A country like China might dominate the production of a particular mineral.
• If a conflict or trade ban happens, the rest of the world could face shortages, causing delays or economic losses.

This geographical concentration creates what we call supply chain vulnerability.

National Context: India’s Critical Mineral List

Every country prepares its own list of critical minerals depending on its:

• Industrial strategy,
• National security needs,
• Technological goals.

✅ India has identified 30 critical minerals which we will discuss in detail shortly.

Strategic Significance of Critical Minerals

Let’s now look at why these minerals are strategically important—we can divide it into 3 major areas:

1. Economic Implications

• Critical minerals are backbones of future industries:
  • Electric vehicles (EVs)
  • Solar panels and wind turbines (Renewable energy)
  • Smartphones and electronics (High-tech devices)

So, without these minerals, future economic growth is hampered.

2. National Security & Defence

• These minerals are essential for defence purposes:
  • Missile systems
  • Radar and surveillance systems
  • Military communication technologies

Hence, any disruption could compromise national security.

3. Diplomatic Leverage

• Since not all countries have these minerals, diplomacy and partnerships become important.

✅ Example:
India has entered into the India–Australia Critical Minerals Investment Partnership, to secure a reliable and friendly supply of such minerals.

Key Drivers Behind the Demand for Critical Minerals

Let’s now understand why the demand for critical minerals is rising—we can think in terms of five major drivers:

1. Energy Technologies & Decarbonisation
   • Transition to clean energy like solar, wind, and hydrogen needs rare earths, lithium, cobalt, etc.
2. Energy Efficiency & Sustainable Consumption
   • Modern appliances are moving toward energy-efficient and greener technologies.
3. Digitization
   • The rise of cloud computing, AI, and data centers demands more specialized minerals.
4. E-Mobility
   • Electric vehicles need lithium, nickel, and graphite for their batteries.
5. Industrial Applications (Advanced & Conventional)
   • Both traditional (like steel-making) and cutting-edge industries (like semiconductors) use these minerals.
6. Infrastructure & Construction
   • Modern, sustainable infrastructure—like smart cities—relies on materials like titanium and rare earths.

🔚 Conclusion

So, in summary, critical minerals are the foundation stones of the future—not just for technology and economy, but also for national security and international diplomacy.

A shortage or dependency on others for these minerals is like having your nervous system exposed—you become vulnerable.

Hence, countries like India are now actively identifying, securing, and investing in the supply of these minerals.