India adopts critical mineral list as newest Mineral Security Partnership member

India is joining the ranks of countries working to build stronger supply chains for energy transition metals and has released its first critical minerals list as part of that strategy.

The Indian government released the list of 30 critical minerals June 28, less than a week after the US "enthusiastically" welcomed India into the Mineral Security Partnership (MSP) to "accelerate the development of diverse and sustainable critical energy minerals supply chains globally" while agreeing to high environmental, social and governance standards, according to a joint statement by the two countries.

China accounts for a major share of India's imports of at least 10 of the listed minerals, including lithium, cobalt, nickel and graphite, according to India's strategy report issued by Union Minister of Coal, Mines and Parliamentary Affairs Pralhad Joshi.

"China currently holds significant control over the supply chain of critical minerals, and India's efforts to diversify sources and secure its own supply contribute to its strategic interests and national security," said Pranay Shukla, S&P Global Commodity Insights' bulk commodities and shipping lead analyst.

Metal import dependence

Economic importance and supply risks were key parameters in developing India's first critical minerals list, the report said.

"International commitments towards reducing carbon emissions require the country to urgently relook at its mineral requirements for energy transition and net-zero commitments," Ministry of Mines Secretary Vivek Bharadwaj said in the report, adding that the government would revisit the list periodically.

The list comprises antimony, beryllium, bismuth, cobalt, copper, gallium, germanium, graphite, hafnium, indium, lithium, molybdenum, niobium, nickel, platinum group elements, phosphorous, potash, rare earth elements, rhenium, silicon, strontium, tantalum, tellurium, tin, titanium, tungsten, vanadium, zirconium, selenium and cadmium.

India has "ample resources" of manganese, copper and graphite but needs further exploration to establish reserves, Bhawnesh Kumar Bhatia, additional secretary general at the Federation of Indian Mineral Industries, said in an email to S&P Global Commodity Insights.

India wholly depends on imports for lithium, cobalt, nickel, rhenium, strontium, vanadium, tantalum, niobium, germanium and beryllium, according to the report.

About 5.9 million metric tons of inferred lithium resources were discovered in February in India's Jammu and Kashmir area, but "further detailed exploration for establishing the proven reserves are yet to be undertaken for mining and extraction of lithium," Bhatia said.

India imports thousands of metric tons of titanium oxides and ores worth nearly $400 million annually due to the challenges in exploring its own domestic ilmenite, which is abundant and could serve as a key raw material but lies unexploited, Shukla said.

International cooperation

India's critical minerals strategy will likely see it bolstering ties with Australia, the world's largest lithium-producing jurisdiction, according to Mohan Yellishetty, who co-founded Monash University's Critical Minerals Consortium in Australia.

"By leveraging the MSP, it makes sense for India to develop its own domestic critical minerals processing industry by importing critical raw materials from Australia" under the 2020 memorandum of understanding between the countries, Yellishetty said in an email interview.

India's government formed the joint venture Khanij Bidesh India Ltd. in 2019 to acquire mineral assets, particularly lithium and cobalt, and is "actively engaged with countries like Australia, Argentina, Bolivia and Chile which are endowed with battery metals," Bhatia said.

Australian Minister for Resources Madeleine King has met India's Joshi twice in the past year to discuss cooperation and investment. And earlier this month, Legacy Iron Ore Ltd. — which is backed by India's NMDC Ltd. — and Hawthorn Resources Ltd. formed a joint venture for lithium exploration and development at Mt Bevan in Western Australia with billionaire Gina Rinehart's Hancock Prospecting Pty. Ltd..

A number of countries, including Japan, South Korea and the US, would also be able to provide assistance to India with battery supply chain technologies and intellectual property for processing, Yellishetty said.

"This would enable India to offer much-needed jobs to its semi- and unskilled workers and provide Western nations with an alternative sourcing resource in addition to catering to domestic requirements," Yellishetty said.

Electric vehicles and consumer electronics will quadruple India's battery demand by 2030 to reach 3,100 GWh, according to Indian government public policy think tank NITI Aayog.

S&P Global Mobility forecasts India's annual EV production will rise to 1.7 million EVs by 2030 and 3 million EVs by 2034. This will require the government to address the need for charging infrastructure for corporate parks and national highways, as well as renewable energy-powered EV charging, said Deya Das, senior research analyst in the S&P Global Mobility Supply Chain and Technology team.

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