Context & Background
- The QUAD alliance — India, USA, Japan, and Australia — has launched a new initiative to build an alternative supply chain for critical minerals.
- The move is a strategic response to:
- China’s dominance in rare earth and critical minerals.
- Risks of supply chain disruptions due to geopolitical tensions, especially in the Indo-Pacific.
- The need for technology sovereignty in sectors like EVs, semiconductors, defence, and renewable energy.
Relevance : GS 2(International Relations ) , GS 3(Critical Minerals)
What Are Critical Minerals?
- Include: Lithium, Cobalt, Nickel, Rare Earths, Graphite, Manganese, etc.
- Crucial for:
- EV batteries
- Semiconductors
- Green energy technologies
- Aerospace & defence
- Advanced electronics
- These minerals are scarce, concentrated geographically, and hard to replace technologically.
China’s Dominance
- China controls:
- 60–70% of rare earth processing
- 50%+ of lithium refining
- 90%+ of some rare earth minerals like Lanthanum, Neodymium, and Dysprosium
- China uses its dominance strategically, allegedly manipulating supply, prices, and exports.
- The West’s overdependence on China for rare minerals has led to supply risks and inflationary pressures in global manufacturing.
Quad’s Response: A Strategic Alternative
- The Quad initiative aims to:
- Secure reliable & resilient supply chains.
- Reduce “coercive leverage” of any one country (read: China).
- Promote ethical mining, sustainable sourcing, and diversification of sources.
- India’s potential:
- Rich in bauxite, lithium, and titanium.
- Upcoming projects like Mandla rare earth plant (MP) and exploration in Aravalli, Satpura belts.
- India is also part of the Minerals Security Partnership (MSP).
India’s EV and Tech Industry at Stake
- India aims for:
- 30% EV penetration by 2030
- Semiconductor self-reliance through initiatives like the India Semiconductor Mission (ISM)
- Requires stable access to cobalt, lithium, rare earths
- Quad supply chains can reduce import dependence and fuel India’s Make-in-India vision.
Global Trends & Linkages
- USA passed Inflation Reduction Act (IRA) and CHIPS & Science Act — both promote domestic mineral sourcing.
- EU’s Critical Raw Materials Act seeks diversification from China.
- The G7’s Clean Energy Supply Chain Initiative aligns with Quad efforts.
Additional Insights
- QUAD+ (including Korea and EU) may eventually join to broaden the supply chain security grid.
- India’s FAME II scheme and PLI schemes in battery, electronics, and automobile sectors depend heavily on secure mineral imports.
Challenges Ahead
- Mining critical minerals is environmentally sensitive.
- India faces regulatory bottlenecks, lack of skilled mining manpower, and infrastructure gaps.
- Global competition may trigger a resource nationalism wave, limiting cooperative access.
Way Forward
- Develop strategic reserves of key minerals.
- Expand India-Australia collaboration (Australia is rich in lithium and rare earths).
- Incentivize domestic exploration, R&D, and clean refining technologies.
- Leverage Quad as a techno-strategic platform, not just military.
