The global race for strategic minerals is rapidly reshaping international politics, trade and industrial policy. Once regarded as obscure geological commodities, minerals such as lithium, cobalt, nickel, graphite, copper and rare earth elements now lie at the heart of the world economy. They power electric vehicles, renewable energy systems, semiconductors, defence technologies, telecommunications and artificial intelligence infrastructure. In the emerging green and digital economy, these minerals are increasingly becoming what oil was to the twentieth century: indispensable instruments of power.

Strategic Minerals as the New Oil

For India and South Asia, this transformation carries enormous implications. The region finds itself navigating a difficult geopolitical landscape marked by great-power competition, fragile supply chains, energy-transition pressures and industrial ambitions. Strategic minerals are no longer merely a mining issue; they are becoming central to economic security, foreign policy and national resilience.

India, in particular, has begun to recognise that the future of its manufacturing ambitions, energy transition and technological advancement depends substantially on secure access to critical minerals. The country's push towards electric mobility, renewable energy expansion, semiconductor manufacturing and green hydrogen production has dramatically increased demand for minerals that India largely imports.

The Government of India has therefore moved to formulate a more coherent critical minerals strategy. A national list of critical minerals has been identified, covering lithium, cobalt, nickel, graphite, rare earth elements, titanium, vanadium and other technologically essential resources. Simultaneously, India has intensified overseas mineral diplomacy through bilateral partnerships with resource-rich countries such as Australia, Argentina, Chile, Namibia and the Democratic Republic of Congo.

An important institutional development has been the creation of Khanij Bidesh India Limited (KABIL), a joint venture established in 2019 and tasked with acquiring and developing overseas mineral assets. India's objective is to reduce excessive dependence on a single supplier country and secure long-term access to mineral resources necessary for industrial growth.

China's Dominance and India's Response

This concern is not unfounded. China today dominates large segments of the global strategic minerals ecosystem. Although many minerals are mined in Africa, Latin America and Australia, China controls much of the processing and refining capacity. It accounts for a significant share of lithium refining, graphite processing, rare earth separation and battery manufacturing. This concentration of supply has created deep anxieties across the world, particularly after the geopolitical disruptions witnessed during the pandemic and subsequent trade tensions.

The United States, the European Union, Japan and India are now attempting to diversify supply chains and reduce strategic dependence on China. Terms such as "friend-shoring", "de-risking" and "resilient supply chains" have entered the global policy vocabulary. India's participation in groupings such as the Quad reflects not only maritime or security cooperation but also a growing economic and technological alignment around supply-chain security.

Yet India's challenge remains formidable. Unlike China, it lacks large-scale domestic reserves of many critical minerals. Recent discoveries of lithium deposits in Jammu and Kashmir generated considerable excitement, but commercial extraction and processing remain years away. Moreover, mining itself requires massive investments, advanced technology, environmental safeguards and infrastructure support.

South Asia in the Emerging Resource Contest

South Asia as a region faces even greater structural limitations. Most countries in the region are not major producers of strategic minerals, but they are becoming increasingly important as manufacturing centres, logistics corridors and geopolitical transit zones.

Pakistan, for instance, possesses considerable copper and gold potential at Reko Diq in Balochistan. Chinese involvement in Pakistan's infrastructure and mining sectors through the China-Pakistan Economic Corridor has strengthened Beijing's strategic foothold in the region. Sri Lanka, though not mineral-rich on the scale of major producers, occupies a strategically critical maritime position in the Indian Ocean and possesses valuable graphite and mineral-sand resources. Bangladesh, meanwhile, is integrating into electronics and industrial supply chains even as it remains dependent on imported raw materials.

Thus, South Asia is becoming part of a larger geopolitical contest over resources, logistics, ports, manufacturing and strategic influence.

Geopolitics, Supply Chains and Resource Nationalism

The broader global context further complicates matters. Strategic minerals are now deeply entangled with geopolitical rivalry. The US-China competition has transformed supply chains into instruments of strategic leverage. Export controls, sanctions, industrial subsidies and technological restrictions increasingly define the international economic environment.

Simultaneously, resource nationalism is rising across mineral-producing countries. Indonesia has restricted nickel ore exports to encourage domestic processing industries. Chile has moved towards greater state participation in lithium development. Several African governments are renegotiating mining agreements to capture greater local value addition. Countries are no longer willing to remain mere exporters of raw materials; they seek industrialisation, technology transfer and downstream manufacturing.

For import-dependent economies such as India, this creates a complicated policy dilemma. On the one hand, India must secure affordable and stable supplies of minerals essential for growth. On the other hand, it must compete in an increasingly fragmented and politicised global market.

Supply-chain vulnerabilities add another layer of uncertainty. Critical minerals and industrial components travel through some of the world's most sensitive maritime chokepoints, including the Strait of Malacca, the Red Sea and the Suez Canal. Geopolitical tensions, regional conflicts, piracy or disruptions in shipping routes can significantly affect industrial production and energy-transition goals.

The ongoing instability in West Asia and disruptions in Red Sea shipping have already highlighted the fragility of global trade routes. For South Asia, heavily dependent on maritime commerce, these developments underline the urgent need for diversified logistics and strategic reserves.

Technology, Sustainability and Industrial Ambitions

Another major challenge concerns technology. Extracting minerals is only part of the value chain. Refining, processing, battery chemistry, semiconductor integration and advanced manufacturing require sophisticated capabilities that remain concentrated in a few countries. India's ambition to become a major manufacturing hub will therefore depend not only on securing mineral access but also on building technological ecosystems and industrial depth.

Environmental concerns also cannot be ignored. Mining operations frequently generate ecological damage, water stress, displacement of indigenous communities and social conflict. South Asia, already vulnerable to climate change and ecological degradation, will have to carefully balance industrial ambition with sustainability considerations. The transition to green energy cannot come at the cost of severe environmental disruption.

Yet despite these challenges, the region possesses significant opportunities. Global firms are increasingly searching for alternatives to China-centric supply chains. India, with its large market, demographic advantage, expanding manufacturing base and geopolitical partnerships, is well positioned to attract investments in batteries, electronics and renewable technologies.

Battery recycling and urban mining may also emerge as important sectors. As electric vehicles proliferate, recycling lithium, cobalt, nickel and rare earths from used batteries could reduce import dependence and create circular industrial ecosystems. India has already begun exploring policies for battery recycling and extended producer responsibility.

Quad and India's Mineral Diplomacy

The global race for critical minerals has emerged as one of the defining geopolitical contests of the twenty-first century. At recent Quad meetings, critical minerals have featured prominently on the agenda, reflecting a shared concern among member countries regarding the concentration of global mineral supply chains.

For India, the issue of critical minerals is closely linked to its ambitious goals of achieving energy security, promoting electric mobility, expanding renewable energy capacity and strengthening domestic manufacturing. The country's commitment to net-zero emissions by 2070 and its push for self-reliance under the Atmanirbhar Bharat initiative require uninterrupted access to critical mineral resources.

Consequently, India has launched the National Critical Minerals Mission and intensified efforts to explore domestic reserves while acquiring overseas mineral assets through international partnerships.

The Quad's Critical Minerals Initiative provides an important platform for achieving these objectives. Through coordinated investments, technology sharing and supply-chain diversification, the initiative seeks to create resilient and transparent mineral supply networks. Australia contributes abundant mineral reserves, Japan offers advanced processing technologies, the United States brings investment and innovation capabilities, while India provides a rapidly expanding market and growing manufacturing base.

Together, these complementary strengths can reduce dependence on any single supplier and strengthen economic resilience across the Indo-Pacific. By working closely with its Quad partners, India aims to secure long-term supplies, develop domestic processing capabilities and integrate itself into emerging global value chains for batteries, semiconductors and clean-energy technologies.

The strategic implications extend beyond economics. Reliable access to critical minerals is increasingly linked to national security, defence preparedness and technological sovereignty. In an era marked by geopolitical competition and supply-chain disruptions, countries that control or have secure access to these resources will enjoy significant strategic advantages.

A Defining Challenge for South Asia

As global demand for critical minerals continues to rise, India's engagement with the Quad demonstrates how energy security is evolving into a broader quest for economic resilience, technological leadership and strategic independence. The success of this agenda will play a crucial role in shaping India's development trajectory and its position in the emerging global order.

For India and South Asia, the stakes are exceptionally high. The region must simultaneously pursue industrial growth, energy transition, economic resilience and geopolitical autonomy. Achieving these goals will require long-term planning, technological investment, regional cooperation and careful diplomacy.

The coming decade may well determine whether South Asia emerges merely as a consumer market in the global green economy or evolves into a significant industrial and technological actor. In that struggle, strategic minerals are likely to become one of the defining geopolitical issues of our age.

(The writer is a retired Special Secretary, Government of India, and a commentator on geoeconomic and regional issues. Views expressed are personal.)