India is keen to join a global alliance to ensure the supply of rare earth elements
Geography (Distribution of Key Natural Resources, Mineral & Energy Resources), GS Paper-II: International Relations (India and its Neighborhood)
Dimensions of the Article:
- Supply chain disruptions
- About Minerals Security Partnership (MSP)
- What are REMs?
- Strategic importance of REMs
- Heavy dependence
- Rare Earth Minerals Reserves – India Ranks 3rd in the World
Supply chain disruptions:
- As part of a global ‘China-plus-one’ strategy adopted post the Covid-19 pandemic that caused massive supply-chain disruptions, a group of western nations are cooperating to develop alternatives to China to ensure key industrial supplies.
- A new US-led partnership initiative of 11 nations aims to bolster critical mineral supply chains. It is called the Minerals Security Partnership (MSP).
- India is not part of this arrangement but it is working to join the grouping to ensure the supply of critical minerals.
About Minerals Security Partnership (MSP):
- The US and 10 partners have come together to form the MSP.
- Members: The US, Australia, Canada, Finland, France, Germany, Japan, the Republic of Korea (South Korea), Sweden, the United Kingdom, and the European Commission.
- Aim: The new grouping is aimed at catalysing investment from governments and the private sector to develop strategic opportunities.
- Demand for critical minerals, which are essential for clean energy and other technologies, is projected to expand significantly in the coming decades.
- The MSP will help catalyse investment from governments and the private sector for strategic opportunities — across the full value chain — that adhere to the highest environmental, social, and governance standards.
- The new grouping, could focus on the supply chains of minerals such as Cobalt, Nickel, Lithium, and also the 17 ‘rare earth’ minerals.
What are REMs?
- The rare earths minerals (REM) are a set of seventeen metallic elements. These include the fifteen lanthanides on the periodic table in addition to scandium and yttrium that show similar physical and chemical properties to the lanthanides.
- The REMs have unique catalytic, metallurgical, nuclear, electrical, magnetic and luminescent properties. While named ‘rare earth’, they are in fact not that rare and are relatively abundant in the Earth’s crust.
Strategic importance of REMs:
- They have distinctive electrical, metallurgical, catalytic, nuclear, magnetic and luminescent properties.
- Its usage range from daily use (e.g., lighter flints, glass polishing mediums, car alternators) to high-end technology (lasers, magnets, batteries, fibre-optic telecommunication cables).
- Even futuristic technologies need these REMs (For example high-temperature superconductivity, safe storage and transport of hydrogen for a post-hydrocarbon economy, environmental global warming and energy efficiency issues).
- Due to their unique magnetic, luminescent, and electrochemical properties, they help in technologies perform with reduced weight, reduced emissions, and energy consumption; therefore give them greater efficiency, performance, miniaturization, speed, durability, and thermal stability.
- In 2019, the U.S. imported 80% of its rare earth minerals from China, the U.S. Geological Survey says.
- The EU gets 98% of its supply from China, the European Commission said last year.
- Amid the transition to green energy, in which rare earth minerals are sure to play a role, China’s market dominance is enough to sound an alarm in western capitals.
- Rare earth minerals, with names like neodymium, praseodymium and dysprosium, are crucial to the manufacture of magnets used in industries of the future, such as wind turbines and electric cars. And they are already being used in consumer goods such as smartphones, computer screens and telescopic lenses.
- In 2021 the U.S. Senate passed a law aimed at improving American competitiveness that includes provisions to improve critical minerals supply chains.
- U.S. aims to boost production and processing of rare earths and lithium, another key mineral component, while “working with allies to increase sustainable global supply and reduce reliance on competitors,” Deputy Director of the National Economic Council in 2021.
- The best hope for boosting American production can be found at the Mountain Pass mine in California.
- Once one of the major players in the sector, the mine suffered as China rose and ate up its market share, aided by Beijing’s subsidies.
- China is expected to remain dominant for some time to come, but experts say that if recycling is scaled up, “20 to 30% of Europe’s rare earth magnet needs by 2030 could be sourced domestically in the EU from literally zero.”
Rare Earth Minerals Reserves – India Ranks 3rd in the World
- India has the third-largest reserves of rare earth minerals in the world. Due to radioactivity of monazite sands, Indian Rare Earths Ltd under the Department of Atomic Energy is the sole producer of rare earth compounds.
- Globally, China has a monopoly over rare earth, after USA’s recede in this industry due to high environmental and health concerns.
- China had once, almost shivered the Japanese economy by halting the export of rare earth elements.
- India is also blessed with some crucial rare earth minerals like zirconium, neodymium etc., available in plenty in monazite sands.
- This could contribute to Indian export markets if utilized properly. However, owing to various reasons such as cost reduction due to high production (economies of scale) in China, lack of demand in the domestic market, lack of domestic processing technologies, the production of rare earth minerals has depleted over years.
- Most of the products that use rare earth minerals as raw materials are imported. Despite rare earth minerals having high value add the potential for export growth, inadequate processing technologies have made India suffer.
-Source: The Indian Express