Critical Minerals: The Strategic Chokepoints of Global Energy Transition

The global movement towards cleaner energy is no longer just a matter of technological progress. Control over critical minerals such as copper and rare earth elements has become a crucial factor, says the Economic Survey 2025-26. These metals are now 'strategic chokepoints' shaping low-carbon economies and wielding influence over energy security and geopolitics, with supplier countries imposing export curbs.

Increased demand from global power grids and data centers has led to volatile copper prices, driven by disruptions in mines across Indonesia, Congo, and Chile, compounded by protectionist trade measures. Advanced economies are pushing for standards-based critical mineral markets to enhance sustainability, transparency, and responsible sourcing, but implementing digital traceability and meeting certification requirements comes at a high cost.

This approach might impose significant challenges on developing nations, as standards could act as barriers to progress, trapping them in low-value segments of supply chains. The affordability of transitioning to cleaner energy becomes an issue if sustainability premiums aren't met with equal support. A globally inclusive framework for critical minerals is essential, treating resource-rich regions as value co-producers. India exemplifies this strategy with its National Critical Mineral Mission, aiming for strategic autonomy alongside global integration.