MINERAL
SECURITY PARTNERSHIP - ECONOMY
News:
India to leverage US-led
Minerals Security Partnership to help PSUs secure critical mineral assets
abroad
What's
in the news?
●
The Union Mines Ministry has proposed to
circulate critical mineral block proposals received by partner countries in the
US-led Minerals Security Partnership (MSP) with central public sector undertakings
or PSUs to allow them to acquire critical mineral assets abroad.
Mineral
Security Partnership:
●
It is a global initiative announced by the
US and other key partner countries
in June 2022 to bolster critical mineral supply chains.
●
It is also known as the Critical Minerals Alliance.
Members:
●
13
countries such as Australia, Canada, Finland, France, Germany,
Japan, the Republic of Korea, Sweden, the United Kingdom, the United States,
Italy, India and the European Commission.
●
India
is one of the member countries.
Objectives:
●
Strengthened information sharing between
partner countries.
●
Increased investment in secure critical
minerals supply chains.
●
Developed recycling technologies.
Aim:
●
To ensure that critical minerals are
produced, processed and recycled in a way that helps countries secure a stable
supply of critical minerals for their economies.
●
To weaken China’s grip on supplies of
critical minerals worldwide.
Focused
Critical Minerals:
●
Lithium, Cobalt, Nickel and 17 rare earth
minerals.
Significance:
●
India’s inclusion in the club is vital for
India to full fill its ambition of shifting towards sustainable mobility through large, reliable fleets of electric
public and private transport.
●
Securing
the supply chain of critical minerals will also provide the
country with the necessary push towards a concerted indigenous electronics and
semiconductor manufacturing.
●
The inclusion will also pave the way for
equitable sharing of resources across the globe.
●
With India pushing for an indigenous development of emerging
technologies in the clean energy sector, scaling up the manufacturing of
the technologies, including solar panels, wind turbines, batteries and electric
vehicles will result in significant demand for and dependence on the supply of
a range of minerals for the foreseeable future.