In News:

• On January 7, 2025, during the inaugural India-Malaysia Security Dialogue in New Delhi, both countries agreed to enhance cooperation in critical minerals and rare earth elements (REEs).
• The meeting was co-chaired by India's National Security Adviser, Ajit Doval, and Malaysia’s Director General of the National Security Council, Raja Dato Nushirwan Bin Zainal Abidin.
• The agreement follows the upgrade of bilateral relations to a Comprehensive Strategic Partnership during Malaysian Prime Minister Anwar Ibrahim’s visit to India in August 2024.
• The dialogue also focused on other security aspects such as counter-terrorism, cyber security, and maritime security.

Importance of Critical Minerals and REEs:

• • Critical Minerals: These are essential for a variety of industries like IT, energy, and defense. They are integral to manufacturing electric vehicle batteries, solar cells, and advanced electronics.

• • Rare Earth Elements (REEs): Used in high-tech applications such as wind turbines, electric vehicle engines, and high-powered magnets. While their extraction is not rare, it is technically difficult due to their complex nature.

Strategic Relevance:

• • Global Demand: The global demand for critical minerals is rising, and both countries see it as a strategic necessity to ensure a stable supply of these materials.
  • Malaysia's Resources: Malaysia possesses significant deposits of non-rare radioactive earth ores, including essential REEs like Neodymium (Nd), Dysprosium (Dy), and Praseodymium (Pr). These elements are crucial in today’s technological innovations.
  • India’s Dependence on Imports: India, which currently imports a substantial portion of its critical minerals, aims to diversify its supply chain by collaborating with Malaysia.

Sustainability and Ecological Accountability:

• • Both countries recognize the environmental challenges of mining these critical resources. Malaysia aims to adopt responsible mining practices that minimize ecological harm.
  • India seeks to ensure a supply chain that aligns with sustainable development goals, balancing economic needs with environmental responsibilities.

Enhancing Supply Chain Resilience:

• • Diversification of Supply Chain: This partnership aims to reduce India’s dependency on a limited number of countries for critical minerals, enhancing resilience against global supply chain disruptions.
  • Collaboration in Extraction and Processing: Both nations are exploring joint ventures in the exploration, extraction, and processing of critical minerals to boost their technological and economic standing globally.

Future Prospects:

• • The institutionalization of this dialogue through annual meetings is expected to strengthen bilateral cooperation in the critical minerals sector.
  • Increased cooperation is likely to enhance economic growth for both countries, aligning them strategically in the global minerals market as demand for these resources continues to soar.

Broader Security Cooperation:

• • Beyond critical minerals, the India-Malaysia Security Dialogue explored enhanced collaboration in areas like counter-terrorism, cyber security, maritime security, and defense industries.
  • This broadening of security cooperation complements the strategic minerals partnership, further solidifying the bilateral ties between the two nations.