NEW DELHI: India, along with more than 30 countries, is working to build an alternative supply chain for critical minerals used in electric vehicles, smartphones and defence equipment, as governments seek to reduce heavy dependence on China after Beijing tightened exports of key minerals, sources said.
“India, along with 30-40 other countries, is trying to create an alternative market and supply chain for critical minerals to reduce import dependence on China,” an official aware of the matter said.
India is in talks with Chile, Canada, Japan, Australia and others to bring them on board for creating a resilient critical minerals supply chain.
Recently, India, Australia, Japan and the US—the Quad partners—set an ambitious target of mobilising up to $20 billion in government and private-sector support to build secure critical minerals supply chains, reduce dependence on dominant suppliers and strengthen regional industry.
“India does have reserves, but these are mostly used for very specific projects, such as those in ISRO. For mass-market needs like smartphones and vehicles, the industry is still importing from China,” another official said. The biggest challenge lies in convincing Indian industry to source from alternative markets, as China continues to enjoy a strong competitive edge in critical mineral exports, sources said adding that pricing is a big concern.
“The challenge lies in matching prices and convincing industry to buy from India and partner countries that are working together,” the official said. India is seeking to position itself as a trusted partner in emerging mineral alliances. “Countries need confidence in our systems before they open up sensitive technologies,” the official said.
Indian agencies are also exploring partnerships with research institutions in Australia to gain expertise in mineral extraction and processing.
What are critical minerals?
Critical minerals include copper, lithium, nickel, cobalt, graphite, aluminium, manganese, silicon, and silver, rare earth elements, among others. These are essential for national security as they are vital for defence, aerospace, nuclear, and space applications
