Critical Minerals: Importance for Energy Transition and National Security

Introduction

Critical minerals are minerals that are economically or strategically important but face significant risks of supply disruption. Their criticality depends on factors such as industrial demand, import dependence, geopolitical concentration, and the availability of substitutes.

They are essential to modern electronics, renewable energy, electric mobility, defence, telecommunications, and advanced manufacturing.

Important examples

Mineral

Major applications

Lithium

Batteries for electric vehicles and energy storage

Cobalt

Batteries and specialised industrial applications

Nickel

Batteries and stainless steel

Graphite

Battery anodes and industrial uses

Rare earth elements

Magnets, electronics, wind turbines, and defence

Gallium

Semiconductors and optoelectronics

Germanium

Fibre optics, infrared optics, and electronics

Niobium

Specialised steel alloys and advanced materials

Tungsten

Hard materials, cutting tools, and industrial applications

Tantalum

Electronic capacitors and specialised equipment

Why are critical minerals important?

1. Clean energy transition

Lithium, graphite, nickel, and other minerals are used in batteries and energy-storage technologies. Rare earth elements are important in some high-performance permanent magnets.

2. Strategic autonomy

Dependence on a small number of suppliers can expose countries to export restrictions, geopolitical tensions, and price volatility.

3. Defence and electronics

Critical minerals are used in radar systems, semiconductors, communication systems, aerospace equipment, and specialised alloys.

4. Recycling and circular economy

Recycling batteries, electronic waste, and industrial products can help recover valuable minerals and reduce pressure on primary mining.

India's approach

India has identified a set of critical minerals to support strategic planning, exploration, domestic production, and supply-chain resilience. The National Critical Mineral Mission was approved in 2025 to strengthen domestic capabilities and improve access to critical mineral resources.

UPSC Prelims Key Pointers

  • Criticality is not a permanent property of a mineral; it can change with technology, demand, and supply conditions.

  • Rare earth elements are a group of 17 elements, including the lanthanides, scandium, and yttrium.

  • Rare earth elements are not necessarily geologically rare; economically viable deposits and processing capacity are important constraints.

  • Lithium is important for many rechargeable batteries.

  • Recycling and material substitution can reduce supply risks.

  • Critical minerals are distinct from fossil fuels, although both can have strategic economic importance.

  • India's critical mineral strategy is relevant to electric mobility, renewable energy, electronics, and national security.