India-Nigeria Collaboration in Critical Minerals: A Strategic Opportunity

Dec 27, 2024

Highlights

  • India and Nigeria seek to establish a collaborative partnership in critical minerals.
  • The partnership aims to address supply chain challenges and counter China's market dominance.
  • Aims to leverage India's advanced mining technologies with Nigeria's rich mineral deposits in lithium, cobalt, and nickel.
  • Potential collaboration hinges on overcoming regulatory, infrastructural, and socio-environmental challenges.
  • Goal is to develop a mutually beneficial minerals sector.

A recent piece (opens in a new tab) authored by Neha Mishra, a Visiting Fellow at the Centre for Air Power Studies (opens in a new tab), examines the potential for collaboration between India and Nigeria in the critical minerals sector. Published under "CAPS in Focus," it highlights the strategic importance of leveraging Nigeriaโ€™s mineral wealth to bolster Indiaโ€™s supply chain resilience, particularly for renewable energy and electric vehicle (EV) technologies. The key message is that Indiaโ€™s technological expertise in mining and Nigeriaโ€™s rich deposits of critical minerals like lithium, cobalt, and nickel present an opportunity for mutual economic growth and supply chain security.

Main Thesis: Critical Mineral Deal India & Nigeria

Mishra hypothesizes that a robust India-Nigeria partnership can address shared challenges, such as Nigeriaโ€™s infrastructure deficits and Indiaโ€™s dependence on critical mineral imports, while countering Chinaโ€™s dominance in the sector. Driving this collaboration are Indiaโ€™s domestic policy reforms, including the National Critical Minerals Mission (opens in a new tab), and Nigeriaโ€™s efforts to formalize its mining industry through initiatives like the Presidential Artisanal Gold Mining Initiative (PAGMI). (opens in a new tab)

Can India be a Counterweight to China?

However, the article assumes that policy harmonization and infrastructure development in Nigeria can be rapidly achieved, which may be overly optimistic given the complex regulatory environment and resource constraints. There is also potential bias in presenting India as a strategic counterweight to China, focusing on the geopolitical rivalry rather than broader market dynamics.

Rare Earth Exchanges Take: What about Ecology?

What the article does not address in depth are environmental and social impacts of scaling up mining operations in Nigeria and how these might affect local communities. Moreover, while the article underscores Indiaโ€™s advanced mining technologies, it does not elaborate on the specific technological or financial frameworks required to ensure long-termsuccess.

In summary, India-Nigeria collaboration in critical minerals offers significant potential for both nations, but achieving this vision will require overcoming regulatory, infrastructural, and socio-environmental hurdles. The article paints an optimistic picture but leaves room for further exploration of challenges and solutions to realize this promising partnership.

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By Daniel

Inspired to launch Rare Earth Exchanges in part due to his lifelong passion for geology and mineralogy, and patriotism, to ensure America and free market economies develop their own rare earth and critical mineral supply chains.

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