Context
India has joined the US-led Minerals Security Finance Network, an initiative aimed toward strengthening international cooperation in securing essential mineral supply chains.
About Minerals Security Finance Network (MSFN)
- It is a new initiative arising from the Minerals Security Partnership (MSP), a framework hooked up by the US in 2022.
- The community aims to bring together institutions from the Indo-Pacific region and Europe, promoting cooperation, information exchange, and co-financing.
Mineral Security Partnership (MSP)
- It is a US-led collaboration that might focus on the supply chains of minerals along with Cobalt, Nickel, Lithium, and also the 17 ‘rare earth’ minerals.
- Members: Australia, Canada, Estonia, Finland, France, Germany, India, Italy, Japan, the Republic of Korea, Norway, Sweden, the United Kingdom, U.S., and the EU. India was inducted to the MSP in 2023.
- Mandate: To catalyze public and private funding in important mineral supply chains globally. It directly addresses 4 major crucial minerals challenges:
- Diversifying and stabilizing global supply chains;
- Investment in the ones supply chains;
- Promoting excessive environmental, social, and governance standards within the mining, processing, and recycling sectors; and
- Increasing recycling of vital minerals.
Critical Minerals
- These are minerals that are vital for economic development and national security.
- The lack of availability of those minerals or the concentration of extraction or processing in some geographical places may potentially result in “supply chain vulnerabilities or even disruption of materials”.
Applications of Critical Minerals
- Clean technologies initiatives which include zero-emission vehicles, wind generators, sun panels and so on.
- Critical minerals which include Cadmium, Cobalt, Gallium, Indium, Selenium and Vanadium and feature makes use of in batteries, semiconductors, solar panels, etc.
- Advanced manufacturing inputs and materials including security applications, everlasting magnets, ceramics.
- Minerals like Beryllium, Titanium, Tungsten, Tantalum, etc have utilization in new technologies, electronics and security systems.
- Platinum Group Metals (PGMs) are utilized in scientific gadgets, most cancers treatment tablets, and dental substances.
Way Ahead
- India’s participation within the community will help in diversifying and securing its supply of important minerals from countries like Argentina, Chile, Australia, and choose African nations.
- The partnership marks a critical step forward for India in its quest to lessen reliance on China for those minerals and construct a robust, self-maintaining supply chain for its inexperienced energy initiatives.
Source: Indian Express