The Minerals Security Partnership (MSP) is a US-led initiative that aims to strengthen critical mineral supply chains and ensure the security of these resources. It consists of 14 nations, including India, which was recently welcomed into the partnership. The MSP was established to address the growing demand for critical minerals, which are essential for the production of clean energy technologies, electric vehicles, and other advanced technologies.
India's Inclusion in MSP
India's inclusion in the MSP is significant as it marks the country's transition to clean energy and paves the way for other countries to join the critical minerals club. The partnership will help India secure its supply of critical minerals, which are crucial for its economic growth and development.
Objectives of MSP
The MSP aims to promote sustainable mining practices and reduce the environmental impact of mining operations.
By working together, the member countries can share knowledge, resources, and best practices to ensure the responsible extraction and use of critical minerals.
Critical minerals in the energy transition
Critical minerals include copper, lithium, nickel, cobalt, and rare earth elements are necessary building blocks for many of the quickly developing renewable energy technologies of today, including electric vehicles, power networks, wind turbines, and nickel.
The biggest producers of key minerals are China, Congo, Chile, Indonesia, South Africa, and Australia, according to the International Energy Agency. China is the processing powerhouse of the world.
The pace of the renewable energy transition will cause a rapid increase in demand for certain minerals.
In general, more essential minerals are needed to construct solar photovoltaic plants, wind farms, and electric automobiles than their fossil fuel-based equivalents.
An offshore wind farm needs thirteen times more mineral resources than a gas-fired plant of the same size, and the average electric car needs six times as much mineral input as a conventional automobile.
Since 2010, as the fraction of renewables in new investment has increased, the average amount of mineral resources required for a new unit of power generation capacity has climbed by 50%.
Technology-wise, different mineral resource kinds are employed.
Graphite, manganese, cobalt, nickel, lithium, and other elements are essential to battery performance.
Permanent magnets, which are utilized in EV motors and wind turbines, require rare earth elements.
Large amounts of copper and aluminum are required for energy networks, with copper serving as the foundation for all technology related to electricity.
Countries must ensure that energy systems continue to be secure and robust even as they step up their efforts to cut emissions.
The increasing significance of essential minerals in a decarbonizing energy system necessitates that energy policymakers broaden their perspectives and take into account possible novel vulnerabilities.
Concerns over supply security and price volatility persist in an electrified energy system that heavily relies on renewable sources.
The Mineral Security Partnership's Importance
Both the Announced Pledges and Net Zero Scenarios predict that by 2050, the mineral demand for sustainable energy technology will have quadrupled.
In our Net Zero Scenario, demand for each of the five essential minerals rises 1.5–7 times by 2030 as the use of clean technology explodes.
Elevated and unstable prices for essential minerals, along with heavily consolidated supply chains, may cause energy transitions to be delayed or more expensive.
Recycle and other steps to slow the increase of demand must be taken in conjunction with actions to diversify and scale up supplies in order to minimize this danger.
Ensuring varied, resilient, and secure clean energy supply chains is crucial, encompassing essential minerals.
Accelerating the creation of varied and sustainable critical energy mineral supply chains on a global scale is the main objective of the MSP.
It has been reported that the MSP evaluated about 150 possible joint projects before choosing twelve more for review.
These initiatives include creating materials for batteries, establishing an essential platform for collaboration in the mining and metals sectors, and working together to construct a mineral processing plant in South America.
Partnership for Mineral Security between India and
Minerals such as strontium, nickel, niobium, graphite, gallium, cobalt, antimony, and many more are essential in India.
A large number of these are required in order to meet the manufacturing requirements for aviation, high-tech equipment, green technology, and national security.
However, despite India's significant mineral geological potential, many minerals are not easily available domestically.
Thus, in order to sustain strong key mineral supply chains, India has to develop a national strategy that prioritizes the minerals found in this study.
India's entry into the US-led critical minerals group is noteworthy since it is expected to benefit the nation's electronics and electric car industries.
It is important for India because it emphasizes how important it is to ensure the supply of vital minerals and because it supports the country's aggressive push toward the production of semiconductors and electronics.
Critical Minerals Investment Partnership: Australia-India
Under the auspices of the Australia-India essential Minerals Investment Partnership, Australia and India have resolved to fortify their collaboration in the areas of essential mineral projects and supply chains.
Australia committed $5.8 million to the three-year collaboration in March 2022.
The Partnership's investments will aim to create new supply chains supported by vital minerals processed in Australia, which would aid India's aspirations to reduce emissions from its power grid and establish itself as a hub for global manufacturing, including the production of electric vehicles.
Australia is the world's second-largest producer of cobalt, the fourth-largest producer of rare earth elements, and generates about half of the world's lithium.
This alliance will play a significant role in safeguarding mutually beneficial vital mineral supply chains, given the anticipated rise in global demand for low-emission technology over the next three decades.
The next step
Minerals are crucial parts of many of the quickly developing sustainable energy technologies of today, including electric vehicles, electrical networks, and wind turbines.
The pace of the renewable energy transition will cause a rapid increase in demand for certain minerals.
India's participation in the Mineral Security Partnership becomes more pertinent in light of the fact that one of the pillars of New Delhi's economic agenda is an ambitious change in the mobility sector driven by the conversion of a sizable amount of public and private transportation to electric cars.
MSP Partners and Principles
Partners of the MSP include Australia, Canada, Finland, France, Germany, India, Italy, Japan, Norway, Republic of Korea, Sweden, United Kingdom, United States, and the European Union
The partnership is guided by principles that emphasize elevating environmental, social, and governance (ESG) standards in the global minerals sector. Projects supported by the MSP must adhere to rigorous ESG standards throughout their lifetime
Framework and Challenges Addressed
The MSP operates through project-focused working groups that assess project compatibility with ESG standards and strategic objectives. It engages various government agencies responsible for foreign affairs, economy, energy, trade, development finance, and export finance. The partnership directly addresses challenges such as diversifying global supply chains, promoting high ESG standards in mining sectors, increasing investment in supply chains, and enhancing recycling of critical minerals
Conclusion
In conclusion, the Minerals Security Partnership is an important initiative that seeks to address the growing demand for critical minerals and ensure their secure supply. With India's recent inclusion, the partnership has expanded its reach and is poised to play a significant role in shaping the future of clean energy and advanced technologies.
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