Diversifying Supply Chains: A Global Call to Secure Critical Minerals

Commerce and Industry Minister Piyush Goyal has raised alarms over the global economic risks posed by heavy reliance on a limited number of countries for critical mineral supplies. During a visit to Italy, he underscored the necessity of diversifying supply chains to mitigate vulnerabilities in mineral extraction and processing, crucial for the clean energy shift.

Meeting with Italian firms active in mineral processing, Goyal stressed the risks inherent in geographic concentration of mineral supplies, which could hinder economic advancement if disrupted. Essential for energy technologies, minerals like cobalt and lithium face supply chain weaknesses. Nations are now more keenly aware, especially after recent global disruptions.

China's dominance, owning extensive mineral reserves worldwide, exacerbates these concerns. Goyal detailed India's strategy to counteract this, focusing on stimulating home-grown innovation, research, and alternative mineral processing. While acknowledging the nascent stage of these efforts, he highlighted ongoing actions to decrease reliance on geographically concentrated resources.

In Italy, discussions unfolded about potential alliances, with Italian Deputy Prime Minister Antonio Tajani showing interest in joint ventures. Such collaborations could broaden critical mineral supply chains, exemplifying models for international partnerships crucial for reducing economic vulnerabilities and supporting clean energy transitions.

Governments increasing view critical minerals as assets of national security, pivotal for economic growth and technological autonomy. Addressing supply issues is now urgent to ensure continued progress towards sustainable energy systems globally.

(With inputs from agencies.)