India has officially joined the Mineral Security Partnership (MSP), a collaboration led by the US that includes 14 countries. The goal of this partnership is to promote investment in critical mineral supply chains worldwide.
A joint statement issued on Friday reiterated the commitment of both governments to work together to ensure a steady supply of essential critical minerals in their markets. India’s inclusion in the MSP was warmly welcomed.
According to the joint statement, the US is pleased to have India as a new partner in the MSP. The partnership aims to accelerate the development of sustainable critical energy minerals supply chains globally, while adhering to environmental, social, and governance standards.
India’s membership in the MSP is significant as it aligns with the country’s growth strategy, which includes a shift towards electric vehicles and electronics manufacturing. This strategy highlights the importance of securing the supply of critical minerals.
India’s entry into the MSP followed a diplomatic effort by New Delhi to address concerns about the country not being part of the strategic partnership aimed at reducing dependency on China for critical minerals. The MSP is considering collaboration on various projects, including developing battery materials and a minerals processing facility in South America.
The MSP focuses on minerals like cobalt, nickel, lithium, and rare earth minerals, which are essential for electric vehicles and high-end electronics manufacturing. China currently dominates the rare earth minerals market, with India looking to enter the lithium value chain as the electric vehicle sector is expected to grow.
India has some rare earth elements like lanthanum and cerium but relies heavily on China for heavy rare earth elements like dysprosium and terbium. The country aims to reduce this dependence and strengthen its position in the global supply chain.
The year 2023 could be a turning point for battery technology, with advancements in lithium-ion technology and alternative combinations in development. India’s participation in the MSP will help in securing critical minerals for its future development.
