China remains a dominant supplier of critical minerals to India, particularly in categories such as ore, waste, scrap, and unwrought or raw metallic products.
Out of the twenty-four minerals identified by India’s mines ministry, China is among the top three suppliers for at least fifteen of these. As a result, India continues to be a net importer of most of these minerals.
Key Critical Minerals Supplied by China
As of FY24, China is the largest supplier of several critical minerals to India, including:
- Cobalt (commercial oxides)
- Molybdenum (unwrought and bars)
- Nickel (oxide and raw form)
- Potash and Glauconite
- Rare Earth Elements (REE)
- Tantalum
- Titanium
- Tungsten
China’s share in these minerals ranges from 99% for nitrates of potassium to 72% for both REE and raw titanium supplies.
For example, China supplied 1,471 tons of nitrates of potassium, while the supply of commercial cobalt oxide was about 25 tonnes.
In the case of artificial graphite, China holds a 66% market share.
Artificial graphite includes various forms like colloidal, semi-colloidal, and preparations such as pastes and blocks. India imported 67,088 tonnes of artificial graphite in the previous fiscal year.
China’s Position in Other Critical Minerals
While China leads in many critical mineral supplies, it is also among the top three suppliers for other essential minerals such as lithium (oxide and hydroxide).
However, it ranks third in lithium supplies, following Belgium and Russia.
China is the second-largest supplier of beryllium salts, cadmium, natural graphite, tellurium, and rhenium, with market shares ranging from 39% for natural graphite to 6% for beryllium salts.
Minerals Where China is Not the Top Supplier
India remains heavily dependent on imports for several minerals, though not necessarily from China. For example, the United States is the sole supplier of gallium and indium.
Similarly, niobium primarily comes from Germany and Russia, while selenium is sourced from Japan. Other notable minerals like tin and platinum group elements are supplied mainly by Indonesia and the UK/UAE, respectively.
Other Mineral Supply Sources
Some critical minerals see competition in the supply market.
For instance, Belgium dominates the supply of cobalt products like hydroxides and oxides, while Madagascar largely supplies natural graphite.
Lithium carbonates are mainly imported from Ireland, and molybdenum is supplied by Chile for ores and concentrates, while the US provides oxides and hydroxides.
In nickel, different countries dominate the supplies across specific categories, depending on the form and type of the mineral.
India’s Net Import Dependency
India’s dependence on imports for critical minerals is primarily due to the limited or non-existent reserves and production within the country.
According to Union Mines Minister G Kishan Reddy, India is a net importer of most critical minerals.
For FY24, the net import bill for critical minerals is approximately ₹30,000 crore.
Among these, phosphorous accounts for the highest net import, standing at ₹12,648 crore. However, India’s import bill has decreased from over ₹42,000 crore in previous years, with phosphorous still being the largest contributor at ₹15,123 crore.
As reported by thehindubusinessline.com, interestingly, India has a positive trade balance for rare earth elements (REE), with a net export of ₹247 crore, suggesting the potential for India to become a net exporter of REE in the future.
