Critical minerals race: India looks to UK, EU for supply chains

India's strategic pivot toward securing critical mineral supply chains marks a defining moment in its economic and geopolitical trajectory. Critical minerals — including lithium, cobalt, nickel, rare earth elements, and graphite — are the backbone of modern technologies: electric vehicles (EVs), renewable energy systems, semiconductors, defence equipment, and telecommunications. As the world accelerates toward net-zero emissions and digital transformation, demand for these minerals has surged exponentially. The International Energy Agency (IEA) projects that demand for lithium could grow over 40 times by 2040 under a sustainable development scenario. For India, which aims to achieve net-zero by 2070 and become a $5 trillion economy, securing these resources is not merely economic — it is a matter of national security and strategic autonomy. Historically, India has been heavily import-dependent for critical minerals. China dominates global processing — controlling over 60% of lithium refining and 90% of rare earth processing — creating a vulnerable chokehold. The 2010 rare earth export restrictions by China on Japan served as a wake-up call for major economies. India's response has evolved from ad hoc imports to a structured policy framework. In 2023, the Ministry of Mines identified 30 critical minerals essential for India's development, based on a three-tier assessment of economic importance, supply risk, and strategic relevance. This list was formalized through an amendment to the Mines and Minerals (Development and Regulation) Act, 1957, via the MMDR Amendment Act, 2023, which empowered the central government to auction blocks for critical minerals like lithium and rare earths — previously reserved for public sector undertakings. The current diplomatic outreach to the UK and EU reflects a deliberate diversification strategy. The UK, through its Critical Minerals Strategy (2022) and the UK-India 2030 Roadmap, has committed to collaboration on mineral exploration, processing, and recycling. The EU's Critical Raw Materials Act (2023) sets benchmarks for domestic capacity — 10% extraction, 40% processing, and 15% recycling by 2030 — and explicitly seeks partnerships with like-minded nations. India's engagement with both aligns with its 'Act East' and 'Extended Neighbourhood' policies, while the US collaboration under the Mineral Security Partnership (MSP), launched in 2022, strengthens the Quad's collective resilience. The MSP includes Australia, Canada, Japan, and others — all key mineral producers. Domestically, the government is incentivizing component manufacturers to scale globally through schemes like the Production Linked Incentive (PLI) for Advanced Chemistry Cell (ACC) Battery Storage (₹18,100 crore) and the Semiconductor Mission (₹76,000 crore). The proposed BIS (Bureau of Indian Standards) certification exemption for high-tech firms — under the BIS Act, 2016 — aims to reduce compliance burdens and accelerate time-to-market for strategic manufacturing. This aligns with Article 298 of the Constitution, which grants the Union and States the power to carry on trade or business, and supports the Directive Principles under Article 39(b) and (c) — ensuring ownership and control of material resources serve the common good and prevent concentration of wealth. Pending trade deals with the Gulf Cooperation Council (GCC) and Israel add another dimension. The GCC is a major source of petrochemicals and emerging hydrogen economies, while Israel brings advanced mining tech and water-efficient extraction methods. However, regional instability — particularly the Israel-Hamas conflict since October 2023 — has stalled negotiations. This underscores how geopolitics directly shapes economic diplomacy. Looking ahead, India's success hinges on three pillars: domestic exploration (currently only 10% of obvious geological potential is explored), processing infrastructure (India lacks commercial-scale rare earth separation), and recycling ecosystems (urban mining from e-waste). The recently launched National Critical Mineral Mission (2024) aims to address these gaps. For aspirants, this topic sits at the intersection of economy, geography, international relations, and governance — a quintessential UPSC/SSC theme. Understanding the legal framework (MMDR Act, BIS Act), institutional mechanisms (Khanij Bidesh India Ltd. for overseas acquisition), and global alliances (MSP, IPEF, Quad) is essential. The race for critical minerals is the new Great Game — and India is determined not to be a spectator.