Minerals Security Partnership

June 24, 2023

The Mineral Security Partnership (MSP) is a strategic alliance led by the United States, including 13 countries like Australia, Canada, Japan, India, and EU member states. Its aim is to encourage investments in critical mineral supply chains, including rare earth elements, which are essential for various industries, including clean energy and electronics.

Focused Minerals: Cobalt, Nickel, Lithium, and Rare Earth Minerals

The MSP places a strong emphasis on the supply chains of critical minerals, including cobalt, nickel, lithium, and the 17 “rare earth” minerals. These minerals are essential for manufacturing advanced technologies such as mobile phones, electric vehicles, solar panels, and defense applications.

India’s Position: Not a Current Member

Currently, India is not a part of the Minerals Security Partnership. However, during Prime Minister Narendra Modi’s visit to the United States, discussions are expected to take place regarding India’s potential entry into this global alliance on critical minerals.

Participating Countries: A Global Effort

The Minerals Security Partnership consists of several key countries, including Japan, Australia, Finland, the United States, Germany, the United Kingdom, Canada, the Republic of Korea, France, Sweden, and the European Union. Together, these nations aim to strengthen critical mineral supply chains and reduce reliance on a single dominant player.

China’s Dominance in Processing: A Major Challenge

In terms of processing critical minerals, China currently holds a dominant position. This highlights the need for diversification and the development of alternative sources to reduce dependence on a single country.

Rare Earth Minerals: Essential Components for High-Tech Industries

Rare earth minerals, which include elements like scandium, yttrium, and lanthanides, are crucial components in the production of various high-tech applications. These minerals are vital for the functioning of devices such as cellular telephones, flat-screen monitors, televisions, and electric vehicles.

India-Australia Critical Minerals Investment Partnership

To strengthen critical mineral supply chains, India and Australia have established the India-Australia Critical Minerals Investment Partnership. This partnership aims to support India’s space and defense industries, as well as the manufacture of electric vehicles, by providing resources and expertise in critical minerals.

Moving Towards Secure and Sustainable Mineral Supply

As India undergoes a transition towards clean energy sources and electric vehicles, securing a reliable supply of critical minerals becomes imperative. By actively participating in global initiatives and forming strategic partnerships, India can address challenges posed by the uneven distribution of rare earth elements and ensure a stable supply of critical minerals for its growing industries.

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