Minerals as Global Influence Currency

Priya Agarwal Hebbar, Vedanta’s non-executive director, emphasized in a June 2025 Outlook Business interview that control over critical minerals like lithium and rare earths is a new currency of global influence. India’s push for domestic production aims to counter China’s 90% refining dominance, supporting strategic sectors and net-zero goals.

Critical minerals, including lithium, cobalt, and neodymium, are vital for EVs, defense, and renewables. China’s 70% mining and 90% refining share, per IEA, gives it leverage, as seen in its April 2025 export curbs, disrupting India’s $5 billion EV market. India’s Rs 5,000 crore Critical Mineral Mission, launched in 2025, targets 5,000 tonnes of domestic production by 2030, per Times of India. Vedanta’s $100 million investment in Rajasthan’s rare earth mines, noted on X, aims to produce 500 tonnes annually.

India’s 40% overlap with U.S. critical mineral lists fosters collaboration, with a 2024 MoU targeting joint processing in Africa. However, 80% import reliance for refining equipment raises costs by 15%. Gujarat’s 100-tonne pilot plant achieves 90% efficiency, but scaling requires $500 million and 10,000 workers. Environmental concerns, like 5% habitat disruption, need $50 million in mitigation. Australia’s 10% global REE share offers a model, using AI-based refining for 20% cost savings.

Challenges include China’s data demands for export licenses, risking trade secrets, per Financial Times. India’s 35% beach sand deposits support mining, but regulatory delays affect 20% of projects. The 2025 Budget’s $1 billion for minerals supports R&D, but 70% of MSMEs lack financing for green transitions.

Conclusion

Critical minerals are pivotal for global influence, with India’s domestic push countering China’s dominance. Overcoming technological and financial barriers is essential for strategic gains.

Source: Outlook Business