Context:

• India’s participation in global mini-lateral groupings or clubs like the Quad (India, Japan, Australia and the US) and the Minerals Security Partnership (MSP) marks a strategic pivot in its mineral diplomacy.
• This is particularly crucial amid the green energy transition and growing dependency on China for critical minerals.
• Recently, the Quad foreign ministers launched the Critical Minerals Initiative to secure and diversify mineral supply chains vital for clean technologies.

The Importance of Critical Minerals:

• Critical minerals are those deemed essential for economic prosperity and national security, and whose supply chains are vulnerable to disruption.
• Critical minerals such as lithium, cobalt, and rare earths are essential for green technologies — electric vehicles (EVs), solar panels, batteries, and semiconductors.
• India’s over-reliance on China poses strategic and economic risks, as seen during Beijing’s recent export control on rare earth magnets.

The Need for Strategic Mineral Partnerships in India:

• Weak domestic ecosystem:
  • Underexplored reserves and a late start in global exploration.
  • Indian firms lack capital and advanced extraction technology.
  • Political risks abroad deter private investment in resource-rich but unstable nations.
• Bilateral agreements - Scope and shortcomings:
  • Agreements with countries like Argentina and Zambia target exploration and mining, while deals with UAE, UK, and US focus on processing and recycling.
  • Without secure mineral inputs, processing units risk becoming stranded assets.

Mini-lateral 'Clubs' - Strategic Value for India:

• Role of mini-laterals:
  • Mini-lateral groupings (e.g., Quad, MSP) pool technical, financial, and diplomatic resources.
  • Enable blended finance, export credit access, and co-development of value chain projects.
• Leveraging foreign expertise:
  • Australia and Japan bring cutting-edge know-how in exploration and refining.
  • Joint efforts help de-risk Indian investments and accelerate clean-tech innovation.

 Risks and Safeguards for India:

• Avoiding unequal value distribution:
  • India risks being seen as merely a processing or transit hub, while value-added activities shift to developed countries.
  • Must negotiate for technology transfer, IPR sharing, and R&D investment clauses.
• Guarding against protectionism:
  • Political changes (e.g., Trump’s policies) can disrupt trade and resource-sharing.
  • India must ensure transparent governance, reciprocal obligations, and robust access terms.

Alignment with Domestic Goals and Global Standards:

• “Make in India” and “Atmanirbhar Bharat”:
  • Aim to build self-reliance in critical minerals and export-driven green industries.
  • Participation in clubs enables compliance with ESG (Environmental, Social, and Governance) standards and global competitiveness.
• Championing the Global South:
  • India’s diaspora and historic ties with Africa and Southeast Asia make it a credible bridge between Global North and South.
  • India can push for inclusive development, scientific sovereignty, and fair global norms.

Conclusion:

• India’s engagement in mineral mini-laterals like the Quad and MSP is essential to secure critical mineral supply chains, reduce dependence on China, and achieve green technology ambitions.
• As India seeks to become a global green power, it must balance strategic partnerships with national interests, negotiate equitable value chains, and ensure capacity building, in line with its developmental ethos.
• India should achieve this without becoming extractive or overly reliant on great power blocs.