TAG: GS-2: INTERNATIONAL RELATIONS
CONTEXT: Recently, India has officially joined the US-led Minerals Security Finance Network.
EXPLANATION:
About Minerals Security Finance Network:
- It is a new initiative emerging from the Minerals Security Partnership (MSP).
- It is aimed at strengthening global cooperation in securing critical mineral supply chains.
- The network brings together institutions from the Indo-Pacific region and Europe, promoting cooperation, information exchange, and co-financing.
- Member countries: The partnership includes 13 countries and the European Commission.
- These are the United States of America, Australia, Canada, Estonia, Finland, France, Germany, India, Italy, Japan, the Republic of Korea, Norway, Sweden, the United Kingdom, and the European Union (represented by the European Commission).
- Significance to India: It helps India in diversifying and securing its supply of critical minerals from nations like Argentina, Chile, Australia, and select African countries. Kazakhstan, in Central Asia, is also being explored as a potential source for India’s mineral requirements.
Key facts about the Minerals Security Partnership
- It is a framework established by the US in 2022.
- It is an ambitious new initiative to bolster critical mineral supply chains, announced by the United States (US) and key partner countries in June 2022.
- The goal of the alliance is to ensure that critical minerals are produced, processed, and recycled in a manner that supports the ability of countries to realise the full economic development benefit of their geological endowments.
- The focus of the grouping would be on the supply chains of minerals such as Cobalt, Nickel, Lithium and also the 17 “rare earth” minerals.
- India was inducted to the MSP in June 2023.
- Significance of Critical minerals: These minerals are vital for the production of renewable energy technologies such as electric vehicle batteries, solar panels, and wind turbines, have become essential components of the global shift towards clean energy.
Source:
https://indianexpress.com/article/business/us-mineral-security-network-mineral-chinese-9587172/
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