Lithium to niobium, export ban on 4 critical new energy metals on the table

Lithium, beryllium, niobium, and tantalum are to be banned for export

In a strategic move aimed at ensuring India’s self-sufficiency in crucial minerals, which are vital for defence, aerospace, and battery storage industries, the government is considering imposing an export ban on four key metals — lithium (Li), beryllium (Be), niobium (Nb), and tantalum (Ta).
 

“The government is planning to introduce a ban on the export of these minerals because of their importance in powering sectors critical to national security and technological advancements,” a senior official said.
 

The move in discussion follows the government’s decision to conclude the auction process for 5.9 million tonnes (mt) of lithium reserves discovered in the Reasi district of Jammu & Kashmir (J&K) by the end of this year. The auction roadmap for the J&K reserves is likely to come by the end of this month, Business Standard reported on August 13. Following concerns raised by the Department of Atomic Energy (DAE) about the export of atomic minerals extracted by private entities within the country, the Ministry of Mines proceeded with the idea to prohibit the export of the aforementioned domestically mined metals. 

The Ministry of Mines, the driving force behind this decision, is set to formally communicate the policy change to the Directorate General of Foreign Trade (DGFT).
 

 Though, at present, almost the entirety of India's reliance on these four minerals is met through imports, the country still exports some processed forms of these minerals. Whether the export of processed minerals will be allowed or not is yet to be determined.

“Most likely the ban will be on indigenously mined minerals. But a final decision will be taken by the Ministry of Commerce and Industry,” another senior official said.

This decision comes hot on the heels of Parliament’s landmark approval of the Mines and Minerals (Development and Regulation) Amendment Bill, 2023. The Bill passed on August 2 opens the door for private corporations to undertake the exploration and extraction of 29 rare earth and critical minerals.

The 2023 Bill allows private exploration and mining for the first time of six atomic minerals, including Li, Be, Nb, and Ta.

Amid the increased focus on clean energy technologies to fulfil India’s carbon emission reduction pledges, the inflow of these minerals is on the rise, draining of millions of dollars from foreign exchange reserves. The government’s implementation of the ban is geared towards fostering the establishment of a domestic supply chain.

These minerals hold critical status not only for India but are also designated as crucial by major global economies. For instance, both Li and Nb are deemed critical in countries, such as Australia, the US, Canada, Japan, and South Korea. Be carries critical mineral classification in all these nations except Canada and the US. Tantalum is excluded from the US’ list of critical minerals.

Though countries have their own classification of critical minerals, depending on economic development, industry requirements, national interests, security concerns, technology, market changes, and natural resource endowment, for most of them criticality is judged by two main parameters — economic importance and supply risk.

In India, according to the “Critical Minerals for India” report released on June 28, Li, Be, and Nb had both high economic importance and supply risk; Ta had only high supply risk.

At present, these minerals are imported by India from various nations, including Russia, China, Australia, Belgium, and South Africa, as well as the US and the UK.

In addition to their applications in the defence, aerospace, and battery storage sectors, these minerals find utility in diverse industries, such as automotive electronics, telecommunications infrastructure, consumer electronics, energy applications, and semiconductor manufacturing.