The demand for essential minerals is increasing as the globe shifts toward clean energy solutions. Their reliance on imports is very high. The majority of these minerals, which are used to power electric vehicles, wind turbines, and solar panels, are imported from China, which is the world’s largest producer and supplier of these resources.
The import value of these minerals reached $4.9 billion (Rs 40,000 crore) in the first half of the current fiscal year (FY24), according to data. As the Centre prepares for the first-ever critical mineral auction, the first phase would only be able to reduce a percentage of the import volume. However, the government intends to protect the supply chain in the face of supply concerns from China.
With a 58% surge, lithium imports have also exceeded the $3 billion (Rs 24,900 crore) mark. This rise is the result of a spike in the electric vehicle (EV), energy storage, and consumer electronics industries. EV sales have topped one million for the second year in a row, and battery manufacturers are increasing production capacity.
Phosphate, Potash, and Molybdenum were also up, which are used not only in numerous sectors but also play important roles in the Indian agriculture sector.
The tender document produced by the Ministry of Mines includes 14 minerals to be auctioned, however, only 10 of them are on India’s list of 24 essential minerals. The remaining four minerals—chromium, copper, manganese (ore), and bauxite—are included because important minerals are frequently found in rocks containing other minerals.
Mineral deposits are frequently formed as a result of specific geological processes and conditions that result in the concentration of several elements in one region. As in the case of Jammu and Kashmir, lithium may be found in conjunction with aluminium-rich minerals such as bauxite. In addition, the government has designated 100-odd blocks of the 24 key minerals for which auctions are scheduled to begin early next year.