Context:
The foreign ministers of the Quad grouping—India, the US, Japan, and Australia—launched the Quad Critical Minerals Initiative to ensure secure, diversified, and reliable supply chains of critical minerals. The move aims to counter global economic coercion and reduce overdependence on any single country, particularly amid concerns over China’s dominance and price manipulation in the sector.
Objectives of the Quad Critical Minerals Initiative
- Diversify and secure supply chains of critical minerals vital to sectors like EVs, electronics, semiconductors, and defense.
- Promote economic security and collective resilience among Quad nations.
- Expand cooperation on e-waste recycling, reprocessing of rare earths, and private sector investment in the critical minerals sector.
Why Critical Minerals Matter
- Rare earths like neodymium, dysprosium, terbium, etc., are vital for:
- Electric vehicle (EV) motors
- Jet fighter engines
- Semiconductor manufacturing
- China dominates processing and refining of these minerals, not just mining.
- It has used export controls to restrict access for strategic and economic leverage, including:
- Banning exports of gallium, germanium, and certain heavy rare earths.
- Imposing bureaucratic hurdles on Indian and Western companies.
Impact on India
- India’s growing EV manufacturing industry is facing supply constraints due to lack of approvals from China for sourcing rare earth magnets.
- Beijing has also pushed Indian companies to import full motor assemblies, rather than components, further increasing dependency.
National Critical Mineral Mission (NCMM)
- India’s NCMM, with a budget of ₹16,300 crore, aims to:
- Boost domestic exploration
- Acquire overseas assets
- Support processing R&D and recycling
- Seek funding through RISE and other multilateral platforms
