MINERAL SECURITY PARTNERSHIP(MSP)
WHY IN NEWS ?
- Recently, India joined the Minerals Security Partnership (MSP), a US-led alliance of 14 developed countries.
WHAT IS MSP ?
- The Minerals Security Partnership (MSP) is a global initiative by the US to bolster critical mineral supply chains.
- It is also known as the critical minerals alliance.
- It was announced by the US and other key partner countries in June 2022.
- Its objective is 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.
- It also aims to weaken China’s grip on supplies of critical minerals worldwide.
- The focus is primarily on the supply chains of critical minerals such as cobalt, nickel, lithium and the 17 “rare earth” minerals.
- India is now the only developing country to become a part of the MSP, the elite critical minerals club set up in June 2022 to secure critical mineral supply chains.
MEMBER COUNTRIES OF MSP :
- Japan,India, Australia, Finland, the US, Germany, the UK, Canada, the Republic of Korea, France, Sweden, and the European Union are part of the Minerals Security Partnership,
WHAT ARE CRITICAL MINERALS ?
- A critical mineral is a mineral resource that is essential to the economy and has high economic vulnerability and high global supply chain risk.
- They are called critical as their lack of availability or even concentration of existence, extraction or processing in few geographical locations may lead to supply chain vulnerability and disruption, threatening economic development and national security.
- Critical minerals have a supply chain at risk of disruption.
- They are used to manufacture advanced technologies, such as mobile phones, tablets, electric vehicles, solar panels, wind turbines, fibre optic cables, and defence and medical applications.
- Many critical minerals, including rare earth minerals and metals such as lithium, gallium, tellurium, and indium, are central to high-tech sectors.
- Rare earth (RE) comprises 17 elements which are classified as light RE elements (LREE) and heavy RE elements (HREE).
- Individual countries develop their own list of critical minerals depending on the importance of particular minerals in the industrial sector and the strategic assessment of supply risks.
- The major critical minerals are graphite, lithium and cobalt.
- They are critical for making semiconductors and high-end electronics manufacturing.
- They are also used in manufacturing fighter jets, drones, and radio sets.
- INDIA’S CONCERNS:
Some rare earth elements available in India are: neodymium, lanthanum, cerium, samarium, and praseodymium. - Some elements classified as heavy RE elements, such as dysprosium, terbium, and europium, are not available in the country in extractable quantities.
- It relies heavily on China for HREE.
- China produces 60 per cent of the world’s rare earth elements. It has also become a dominant player in refining and processing critical minerals that it does not produce.
- India has recently witnessed a shift from public and private transport to electric vehicles.
- This underlines the need to secure the supply of critical minerals.
- India needs a multi-dimensional mineral policy to address the issues posed by the uneven distribution of rare earth elements, the Economic Survey 2022-23 had pointed out.
IMPORTANCE OF MSP TO INDIA:
- As the objective of MSP is to ensure that critical minerals are produced, processed, and recycled in a manner that supports the ability of countries to realize the full economic development benefit of their geological endowments.
- 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.
- As the first major developing country to join the group, India gives it greater international balance.
- It should enhance efforts for supply chain security, particularly because of China’s current dominance over mining, processing, and refining of many key critical minerals.
- MSP will help India to make better use of its great geological potential.
CHALLENGES IN INDIA’S CRITICAL MINERAL SECTOR:
- Minuscule private sector participation in this sector.
- The challenge is in finding the minerals immediately because it may take upto a decade to start the mine production.
- Over-restrictions by the government over this sector.
- India does not have any raw materials for hard REE and so is not able to manufacture any processed products like rare earth permanent magnets.
WHAT NEEDS TO BE DONE?
- India needs to double down on prospecting and exploration efforts to find critical minerals in India given its huge geological potential.
- As India is the only voice of the global south, it’s a huge opportunity to drive some of these discussions that developing countries face, talking about on the ground challenges and increasing collaboration with developed countries, who have the technology and financial resources.
WAY FORWARD:
- India’s entry into MSP will foster several bilateral, plurilateral and multilateral agreements, specifically for the governance involving critical minerals and their strategic importance among the member countries.
- India getting into alliances like MSP, along with policy initiatives like coming out with a list of critical minerals and finalising a critical mineral policy is so crucial for India’s energy security.
SYLLABUS: MAINS, GS-2, MULTILATERAL ORGANISATIONS
SOURCE: DOWN TO EARTH
