The Union Cabinet is likely to approve two key agreements with Germany and Canada to strengthen India’s access to critical minerals, reported PTI quoting the sources. The decisions are expected to be taken at a Cabinet meeting chaired by Prime Minister Narendra Modi.

The proposed agreements come at a time when countries across the world are competing to secure supplies of minerals that are essential for clean energy, electric vehicles, electronics and defence technologies.

Focus on Germany and Canada partnerships

The pact with Germany will focus on joint exploration of mineral assets, sustainable mining practices, building resilient supply chains and technology transfer. Officials said the idea is to combine India’s demand strength with Germany’s technological expertise. The agreement is expected to support cooperation in areas such as lithium processing, recycling of critical materials and improving environmental standards in mining.

A similar Joint Declaration of Intent with Canada is also likely to be cleared. Canada is rich in minerals such as lithium, cobalt and nickel, which are key inputs for batteries and renewable energy systems. The agreement is expected to help India diversify its sources of supply and reduce dependence on a few countries.

Budgetary support to the mineral sector

In the Union Budget 2026–27, the government allocated ₹7,280 crore specifically for the mineral sector and related strategic initiatives, including support for rare earth minerals and new mining corridors. This allocation is aimed at strengthening exploration, processing and supply chains for critical materials needed for industries like clean energy, electronics and electric vehicles.

Separately, the broader National Critical Mineral Mission has a total outlay of ₹34,300 crore spread over seven years (from FY 2024-25 to 2030-31). Of this, ₹16,300 crore is direct government expenditure, with around ₹2,600 crore coming as budgetary support and the rest expected to be invested by public sector companies. 

National Critical Mineral Mission

The latest moves are part of India’s National  Critical Minerals Mission, launched last year. The mission aims to ensure long-term availability of key minerals for the country’s energy transition and manufacturing growth.

It focuses on three main areas: identifying and exploring domestic resources, securing overseas mineral assets through partnerships and investments, and building processing and recycling capacity within the country.