Knowledge Nugget: Why is Quad Critical Minerals Initiative important for your UPSC exam

Indian Express

2 days ago

Take a look at the essential concepts, terms, quotes, or phenomena every day and brush up on your knowledge. Here's your knowledge nugget for today.
(Relevance: QUAD groupings and their initiatives are essential from the exam perspective. More importantly, critical minerals have become the 'oil' of the new world; new groupings in managing the supply chain are significant from a holistic perspective. UPSC has asked questions on minerals and international groups. In light of ongoing trade tussles, this initiative is very important for your exam.)
The second Quad foreign ministers' meeting was held in Washington, DC. It was attended by External Affairs Minister S Jaishankar, US Secretary of State Marco Rubio, Australian Foreign Minister Penny Wong and Japan Foreign Minister Takeshi Iwaya. They strongly condemned the Pahalgam terrorist attack, called for the 'perpetrators, organisers, and financiers of this reprehensible act to be brought to justice without any delay', and urged all UN member countries to cooperate with all authorities under international law in this regard.
The QUAD foreign ministers also launched the Quad Critical Minerals Initiative and announced plans to host the first Quad Indo-Pacific Logistics Network field training exercise this year and launch the Quad Ports of the Future Partnership in Mumbai this year.
1. The joint statement said that to ensure the Quad's enduring impact, the focus has been on four key areas: maritime and transnational security, economic prosperity and security, critical and emerging technology, and humanitarian assistance and emergency response.
2. They expressed concern about the abrupt constriction and future reliability of key supply chains, specifically for critical minerals. The issues highlighted were the use of non-market policies and practices for critical minerals, certain derivative products, and mineral processing technology.
3. This QUAD critical minerals initiative underscores the importance of diversified and reliable global supply chains. 'Reliance on any one country for processing and refining critical minerals and derivative goods production exposes our industries to economic coercion, price manipulation, and supply chain disruptions, which further harms our economic and national security,' said the statement.
We are launching today the Quad Critical Minerals Initiative, an ambitious expansion of our partnership to strengthen economic security and collective resilience by collaborating to secure and diversify critical minerals supply chains.
4. According to the Report of the Committee on Identification of Critical Minerals, 'Critical minerals are the foundation on which modern technology is built. From solar panels to semiconductors, wind turbines to advanced batteries for storage and transportation, the world needs critical minerals to build these products.'
In simple terms, without critical minerals, there is no energy transition, which is why their supply chain resilience has become an increasing priority for major countries.
5. Dhiraj Nayyar in The Indian Express writes, 'Coal powered the first industrial revolution of the 19th and early 20th centuries. Oil and its derivatives fuelled the Second Industrial Revolution (think cars and planes), and global prosperity in the second half of the 20th century. Now, the long 21st century is going to be the critical minerals age.'
QUAD groupings
The United States is hosting the 2025 Quad Foreign Ministers Meeting, and India will host the 2025 Quad Leaders Summit.
Dependence on China for critical minerals
📍Dhiraj Nayyar writes, China alone accounts for two-thirds of global rare earths mining. Australia, Chile, and China account for a majority of lithium mining. In processing, there is complete dominance across the board by just one country, China. Sixty-six per cent of the processing of critical minerals (also including copper and aluminium) takes place in China. For rare earths, this goes up to more than 90 per cent. China alone can bring the global EV industry to a halt by restricting the supply of rare earths.
📍As per the International Energy Agency, China accounts for a 35 per cent share in the refining of nickel, 50-70 per cent of lithium and cobalt and around 90 per cent for rare earth elements. China not only dominates the production of rare earths, but also has the most reserves. As per data from the US Geological Survey, the country's reserves have been estimated at 44 million metric tons. Brazil's reserves have been pegged at 21 million metric tons, India's at 6.9 million, Australia's at 5.7 million, Russia's at 3.8 million, and Vietnam's at 3.5 million.
1. In January 2025, India launched a National Critical Mineral Mission to help achieve self-reliance in the critical mineral sector. In 2023, the Centre also identified 30 critical minerals, including lithium, cobalt, nickel, graphite, tin and copper, which are essential for the country's economic development and national security.
2. The Rs 16,300-crore National Critical Minerals Mission (NCMM) is to promote the exploration of critical minerals within the country and at offshore locations. It aims to intensify the exploration of critical minerals within the country and in its offshore areas. It plans to create a fast-track regulatory approval process for critical mineral mining projects.
National Critical Minerals Mission aims to reduce import dependence, strengthen domestic value chains, and support India's 'Net Zero by 2070' goal. – Prime Minister, Shri Narendra Modi
3. According to a report published by the Institute for Energy Economics and Financial Analysis (IEEFA) in 2024, India's demand for critical minerals is expected to more than double by 2030, while domestic mining operations may take over a decade to start producing.
4. The report said India depends heavily on China for synthetic graphite and natural graphite, and it should explore cooperation initiatives with countries like Mozambique, Madagascar, Brazil, and Tanzania, which are some of the highest graphite-producing countries.
5. India has committed to achieving 500 gigawatts (GW) of non-fossil fuel-based electricity installed capacity by 2030. In light of this, India becoming a member of the Minerals Security Partnership (MSP) in 2023 and QUAD Critical Minerals Initiative are important steps to fulfill the commitment.
1. In June 2023, India was inducted into the MSP, a US-led collaboration of 14 countries that aimed to catalyse public and private investment in critical mineral supply chains globally. Last year, India also became a part of the Minerals Security Finance Network (MSFN).
2. MSP partners include Australia, Canada, Estonia, Finland, France, Germany, India, Italy, Japan, Norway, the Republic of Korea, Sweden, the United Kingdom, the United States, and the European Union (represented by the European Commission).
3. The MSP grouping is focused on the supply chains of minerals such as Cobalt, Nickel, Lithium, and also the 17 'rare earth' minerals. The alliance is seen as primarily focused on evolving an alternative to China, which has created processing infrastructure in rare earth minerals and has acquired mines in Africa for elements such as Cobalt.
4. The collaboration is engaged in fostering a critical minerals and metals cooperation forum for the sharing of expertise, building a robust battery materials supply chain, and jointly developing a minerals processing facility in South America.
(1) Consider the following statements about the Minerals Security Partnership (MSP):
1. The NATO-led initiative was launched to create a global supply chain of critical minerals.
2. In 2023, India and Sri Lanka became members of MSP, taking the total count to 14.
Which of the following statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
(2) Recently, there has been a concern over the short supply of a group of elements called 'rare earth metals'. Why? (UPSC CSE 2012)
1. China, which is the largest producer of these elements, has imposed some restrictions on their export.
2. Other than China, Australia, Canada, and Chile, these elements are not found in any country.
3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
(Source: Cabinet approves critical minerals mission with Rs 16,300 crore outlay, India needs a strategy to deal with China's restrictions on exports of rare earths, What is India's share in rare earth elements, the backbone of modern technologies?, Quad leaders condemn 'reprehensible' Pahalgam attack)
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Khushboo Kumari is a Deputy Copy Editor with The Indian Express. She has done her graduation and post-graduation in History from the University of Delhi. At The Indian Express, she writes for the UPSC section. She holds experience in UPSC-related content development. You can contact her via email: [e-mail] ... Read More