Introduction

Critical minerals such as copper, cobalt, nickel, lithium, and rare earth elements are essential for the global transition to green energy and advanced technologies. Over the past two decades, China has consolidated its control over these resources, leveraging financial investments and strategic partnerships. To counter this dominance, countries like India must adopt innovative strategies and partnerships.

China’s Dominance in Critical Minerals

China has established a stronghold in the global critical minerals sector through its Belt and Road Initiative (BRI). This dominance is not only economic but also geopolitical, allowing China to dictate market prices and influence supply chains.

Key Factors	Details
Minerals Controlled	Copper, Cobalt, Nickel, Lithium, Rare Earth Elements
Regions Targeted	Africa, Latin America, Southeast Asia
Investment (Since 2000)	$56.9 billion
Main Strategy	Joint ventures, syndicated loans, state-backed financing

China’s Investment and Financial Strategies

Initially, China relied on state-backed policy banks for mineral financing. However, its lending model has evolved to include syndicated loans with commercial banks and non-Chinese creditors.

Investment Mechanism	Percentage of Loans
Syndicated Loans (Non-Chinese Banks)	79%
Loans to Joint Ventures & SPVs	81%

China’s willingness to provide long-term, risk-tolerant capital has given it an advantage over Western competitors, who often face environmental regulations and shareholder pressures.

India’s Response: National Critical Mineral Mission

India has launched the National Critical Mineral Mission to reduce dependency on China and build its own supply chain resilience. However, its financial leverage remains limited compared to China’s aggressive investment approach.

India’s Key Strategies	Challenges Faced
Securing Overseas Assets	Limited Financial Capital
Enhancing Domestic Processing	Lack of Advanced Infrastructure
Partnering with Allies (Quad, U.S., Japan, Australia)	Need for Stronger ESG Compliance

Need for Strategic Partnerships

To counter China’s dominance, India must align with global partners through initiatives such as the Minerals Security Partnership (MSP). These alliances focus on ethical and environmentally sustainable supply chains, ensuring resource security while maintaining ESG (Environmental, Social, and Governance) standards.

Emerging Opportunities: Resource Nationalism

Several resource-rich nations in Africa and Latin America are increasingly seeking to reduce reliance on China. This resource nationalism presents opportunities for India and other countries to engage in mutually beneficial investment models.

Country	Emerging Policies
Chile	Nationalizing lithium extraction
Indonesia	Banning raw nickel exports to push local processing
Democratic Republic of Congo	Increasing local control over cobalt mining

Future Outlook

India’s path to securing critical minerals must involve:

• Joint ventures with resource-rich nations to establish processing hubs.
• Technology transfers to enhance domestic mineral refinement capabilities.
• Compliance with ESG standards to attract global investors and ensure sustainability.

Geopolitical Implications

China’s control over critical minerals extends beyond economics—it serves as a geopolitical tool in the global energy transition. Ensuring diversified and resilient supply chains is crucial for India and its allies to maintain strategic autonomy in the mineral sector.

Conclusion

Breaking China’s stronghold in the critical minerals supply chain requires a multi-pronged approach, including financial innovation, strategic alliances, and sustainable investment. India, along with its allies, must act swiftly to establish an alternative, competitive, and ethical supply chain for critical minerals.