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Module 9 • Critical Minerals & Energy Geopolitics2026-08-2016 min read

Critical Minerals War, Processing Chokepoints & Clean Energy Transition: Lithium, Cobalt, Rare Earths & The Nuclear Renaissance

Target Exam: UPSC & State PSCs World Current Affairs•Official Sources: World International State Gazettes, Budget & Official ReleasesUnited Nations, IMF, World Bank, Global Treaties & International Official Records

1. The Critical Minerals Geopolitical Matrix

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Mine vs. Refining Chokepoint: While geological deposits are geographically dispersed, refining and chemical processing represent the true geopolitical bottleneck. China controls over 60% of worldwide mining processing and 85–90% of refining capacity for rare earth elements (REEs), cobalt, lithium, and graphite.
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Geographical Concentrations:
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Lithium Triangle: Chile, Argentina, and Bolivia account for over 50% of global lithium reserves (predominantly in continental salt brines / salars). Australia remains the top hard-rock spodumene producer.
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Cobalt: The Democratic Republic of the Congo (DRC) supplies over 70% of global mined cobalt, predominantly refined in China.
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Nickel: Indonesia produces over 50% of global refined nickel, leveraging High-Pressure Acid Leach (HPAL) technology backed by Chinese investment.
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Export Restrictions: China implemented licensing controls and export curbs on gallium, germanium, and antimony, essential for semiconductor fabrication and military infrared optics.

2. The Global Nuclear Renaissance & SMRs

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Shift to Baseload Nuclear: Following the 2023–2026 energy crises, over 25 countries pledged at COP declarations to triple nuclear capacity by 2050.
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Small Modular Reactors (SMRs): Pre-fabricated nuclear reactors producing up to 300 MWe per module (compared to 1,000+ MWe for conventional reactors). SMRs offer passive safety features, smaller containment footprints, and scalability for data centres, remote mining sites, and seawater desalination.
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Fuel Cycle & Uranium Geopolitics: High-Assay Low-Enriched Uranium (HALEU - enriched between 5% and 20% U-235) represents a key bottleneck, with Western nations seeking to replace Russian enrichment monopolies.
Key Examination Takeaways:
  • China controls 60%+ of critical mineral processing and 85-90% of rare earth refining.
  • Lithium Triangle comprises Chile, Argentina, and Bolivia; DRC yields 70%+ of mined cobalt.
  • China instituted export curbs on critical dual-use elements: gallium, germanium, and antimony.
  • SMRs (up to 300 MWe) are emerging as factory-fabricated baseload power for tech infrastructure and data centres.
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Q1

Which three South American countries comprise the world's renowned 'Lithium Triangle' holding over half of global lithium reserves?

Q2

Which African nation accounts for more than 70% of total worldwide mined production of cobalt?

Q3

Which country is the world's leading producer and refiner of nickel, producing over 50% of global supply using HPAL technology?

Q4

On which two critical semiconductor materials did China implement strict export licensing curbs in late 2023, followed by antimony in 2024?

Q5

According to the International Atomic Energy Agency (IAEA), what is the maximum power generation capacity of a Small Modular Reactor (SMR)?

Q6

What is the enrichment level of U-235 defining High-Assay Low-Enriched Uranium (HALEU) required for next-generation advanced nuclear reactors?

Q7

Which multilateral partnership launched by the US, India, Japan, and other allies aims to secure resilient critical mineral supply chains?

Q8

Which element, predominantly mined as a by-product of bauxite processing, is essential for high-power radar systems, 5G base stations, and electric vehicle semiconductors?

Q9

Which country produces the largest quantity of mined lithium from hard-rock spodumene ore deposits?

Q10

With reference to critical minerals and the clean energy transition, consider the following statements: 1. The production of electric vehicles and wind turbines requires significantly higher quantities of mineral inputs compared to fossil fuel counterparts. 2. China currently dominates global chemical refining for rare earth elements, cobalt, and battery-grade lithium. 3. Recycling of lithium-ion batteries currently satisfies 100% of global industrial demand for cobalt and lithium. Which of the statements given above are correct?

Q11

Consider the following statements regarding Small Modular Reactors (SMRs): 1. SMRs have an electrical power generation capacity limited to a maximum of 300 MWe per unit. 2. SMRs are designed for factory fabrication and can be transported as modules to deployment sites via rail or barge. 3. SMRs rely entirely on chemical coal combustion to initiate nuclear fission. Which of the statements given above are correct?

Q12

With reference to the Minerals Security Partnership (MSP), consider the following statements: 1. It is a multilateral partnership formed to catalyze public and private investment in critical mineral supply chains. 2. India was inducted into the Minerals Security Partnership in 2023. 3. The MSP is an affiliate body established under the statutory authority of OPEC. Which of the statements given above are correct?

Q13

Consider the following statements regarding the geographical occurrence of Rare Earth Elements (REEs): 1. Rare Earth Elements comprise the 15 lanthanides plus scandium and yttrium. 2. Despite their name, rare earth elements are relatively abundant in the Earth's crust, but minable economic concentrations are rare. 3. Monazite sands found in the coastal placers of Kerala and Odisha in India are rich in rare earth elements and thorium. Which of the statements given above are correct?

Q14

With reference to the environmental and social impacts of critical mineral extraction, consider the following statements: 1. Lithium extraction from continental brines in the Atacama desert consumes large volumes of groundwater, affecting local indigenous ecosystems. 2. Artisanal cobalt mining in the DRC has raised international concerns over child labour and hazardous occupational safety conditions. 3. The processing of rare earth elements produces zero hazardous chemical or radioactive waste. Which of the statements given above are correct?

Q15

Consider the following statements regarding the geopolitics of uranium supply: 1. Kazakhstan is the world's largest producer of mined uranium, accounting for over 40% of global output. 2. Australia possesses the world's largest known recoverable resources of uranium. 3. Commercial nuclear reactors can directly utilize natural unprocessed uranium ore without any chemical conversion or concentration. Which of the statements given above are correct?