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Minerals Security Finance Network (MSFN)

Last updated on September 26th, 2024 Posted on September 26, 2024 by NEXT IAS Current Affairs Team  818

Syllabus: GS2/ International Relations

Context

  • India has joined the US-led Minerals Security Finance Network, an initiative aimed at strengthening global cooperation in securing critical mineral supply chains.

Minerals Security Finance Network (MSFN)

  • It is a new initiative emerging from the Minerals Security Partnership (MSP), a framework established by the US in 2022. 
  • The network aims to bring together institutions from the Indo-Pacific region and Europe, promoting cooperation, information exchange, and co-financing. 
Mineral Security Partnership (MSP)
– It is a US-led collaboration that would focus on the supply chains of minerals such as Cobalt, Nickel, Lithium, and also the 17 ‘rare earth’ minerals.
– Members: Australia, Canada, Estonia, Finland, France, Germany, India, Italy, Japan, the Republic of Korea, Norway, Sweden, the UK, U.S., and the EU. India was inducted to the MSP in 2023.
– Mandate: To catalyze public and private investment in critical mineral supply chains globally. It directly addresses four major critical minerals challenges:   
1. Diversifying and stabilizing global supply chains; 
2. Investment in those supply chains; 
3. Promoting high environmental, social, and governance standards in the mining, processing, and recycling sectors; and 
4. Increasing recycling of critical minerals. 

What are Critical Minerals?

  • These are minerals that are essential for economic development and national security.
  • The lack of availability of these minerals or the concentration of extraction or processing in a few geographical locations could potentially lead to “supply chain vulnerabilities and even disruption of supplies”.

Applications of Critical Minerals

  • Clean technologies initiatives such as zero-emission vehicles, wind turbines, solar panels etc.
    • Critical minerals such as Cadmium, Cobalt, Gallium, Indium, Selenium and Vanadium and have uses in batteries, semiconductors, solar panels, etc.
  • Advanced manufacturing inputs and materials such as defense applications, permanent magnets, ceramics.
    • Minerals like Beryllium, Titanium, Tungsten, Tantalum, etc. have usage in new technologies, electronics and defense equipment.
  • Platinum Group Metals (PGMs) are used in medical devices, cancer treatment drugs, and dental materials.

Way Ahead

  • India’s participation in the network will help in diversifying and securing its supply of critical minerals from nations like Argentina, Chile, Australia, and select African countries. 
  • The partnership marks a critical step forward for India in its quest to reduce reliance on China for these minerals and build a robust, self-sustaining supply chain for its green energy initiatives.

Source: BS

 
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