Context: The United States has classified coal, especially coking coal, as a critical mineral. This marks a stark departure from previous energy policies and could have far-reaching implications for climate targets and global coal markets.
Relevance of the Topic: Prelims: Key facts related to Critical Minerals.
US classifies Coal as a Critical Mineral:
- The US has classified coal as a critical mineral. This classification aims to:
- Revive the declining US coal industry, which peaked in 2008.
- Support domestic manufacturing, especially the steel industry.
- Power AI data centres that require consistent electricity supply, unlike variable renewables.
- The US became among the first countries in the world to do so.
- The European Union also includes coal in its list of “critical raw materials,” alongside high-demand minerals such as lithium, cobalt, and rare earth elements.
- Recently, a NITI Aayog report titled ‘Enhanced Domestic Coking Coal Availability to Reduce the import of Coking Coal’ also advocated coking coal to be included in the list of critical minerals.
- Concerns: Doubling down on coal without parallel investments in carbon capture or emissions abatement could derail national and global net zero targets.
What are Critical Minerals?
Critical minerals are metallic or non-metallic elements that are:
- Essential for modern technologies, economy and national security, such as electronics, renewable energy, and defense.
- Subject to disruption of supply chain, often due to limited reserves, geopolitical issues, or complex processing.
Utility of Critical Minerals:
- Renewable Energy sector: Graphite, Lithium, Cobalt, and Nickel are key components of batteries for electric vehicles (EVs).
- Defence and Aerospace: Tungsten, molybdenum, and REEs are used in advanced weaponry, fighter jets, satellites, and aircraft. E.g., India’s Chandrayaan-3 mission (2023) and the upcoming Gaganyaan mission underscore the strategic significance of beryllium, tungsten, and rare earth elements.
- High-Tech Manufacturing: REEs, Indium, and Gallium are used in electronics, semiconductors, and renewable technologies.
- Agriculture: Fertiliser minerals like potash and phosphate.
Global Distribution of Critical Minerals:
- According to the 2019 USGS Mineral Commodity Summaries report, China is the world’s largest producer of 16 critical minerals. China is responsible for 60% of global production of rare earth elements.
Critical Minerals in India:
- Different countries create their own lists of critical minerals based on their individual needs and strategic considerations. In 2023, the Ministry of Mines, India classified 30 minerals as critical minerals.
- These are: Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE,Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium,Zirconium, Selenium and Cadmium.
- India is heavily dependent on imports for critical minerals, making its key strategic sectors vulnerable to global supply chain disruptions and geopolitical tensions.
Also Read: China tops list of Critical Mineral suppliers to India