India is in mission mode to become a global hub for critical minerals

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Launched in June, India's National Critical Mineral Mission seeks to boost self-reliance by securing mineral supply chains and enhancing domestic production and overseas acquisitions. With a focus on innovation and skill development, the mission aims to position India as a leader in critical mineral production, essential for renewable energy and electric vehicles, while reducing its dependence on China.
India is in mission mode to become a global hub for critical minerals
In most of these critical minerals, globally, China is the most dominant producer and refiner. Credits: Getty Images

India is getting ready to ensure self-reliance in critical minerals, as the country has launched the National Critical Mineral Mission or NCMM in June. Its main objective is to secure India’s critical mineral supply chain by ensuring mineral availability from domestic and foreign sources and strengthening the value chains by enhancing technological, regulatory, and financial ecosystems. The mission will also foster innovation, skill development, and global competitiveness in mineral exploration, mining, beneficiation, processing, and recycling, to make India a major global hub for critical minerals.

Under the mission, the Geological Survey of India (GSI) has been tasked with conducting 1,200 new exploration projects in India from 2024-25 to 2030-31. A committee formed by the Ministry of Mines in November 2022 identified 30 critical minerals, with 24 to be included in Part D of Schedule I of the Mines and Minerals Development and Regulation Act, 1957 (MMDR Act, 1957). By this, the central government now has the exclusive authority to auction mining leases and composite licences for these specific minerals.

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What are critical minerals?

Critical minerals are essential components of various clean energy technologies and industries. Critical minerals such as silicon, tellurium, indium, and gallium are vital for the production of photovoltaic (PV) cells used in solar panels. Rare earth elements like dysprosium and neodymium are used in permanent magnets for wind turbines. Lithium, nickel, and cobalt are key materials used in lithium-ion batteries. These Critical and Strategic Minerals specified in Part D of the First Schedule of the MMDR Act are the following:

1. Beryl and other beryllium

3. Cobalt

4. Gallium

5. Glauconite

6. Graphite

7. Indium

8. Lithium

9. Molybdenum

10. Nickel

11. Niobium

12. Phosphate (without uranium)

13. Platinum group of elements

14. Potash

15. Minerals of the "rare earths" group not containing Uranium and Thorium

16. Rhenium

17. Selenium

18. Tantalum

19. Tellurium

20. Tin

21. Titanium and ores (ilmenite, rutile and leucoxene)

22. Tungsten

23. Vanadium

24. Zirconium and ores, including zircon

These minerals play a critical role in India's big plans of transitioning to renewable energy-focussed new energy forms, semiconductors and various industry products. India's vision is to have 500 GW of renewable energy by 2030, of which solar will be the major contributor with about 280 GW. So far, the total installed capacity of solar has increased to over 105 MW. India aims to increase its wind energy capacity from the current 42 GW to 140 GW by 2030, necessitating a stable supply of these minerals.

In 2024 alone, India tendered 73 GW of utility-scale renewable energy capacity, exceeding the Ministry of New and Renewable Energy‘s (MNRE) annual target of 50 GW. The National Electric Mobility Mission Plan (NEMMP) 2020 aims to have 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two- and three-wheelers being electric by 2030. This translates to an ambitious target of 80 million EVs on Indian roads by 2030.

China rules the critical minerals world

In most of these critical minerals, globally, China is the most dominant producer and refiner. According to International Energy Agency (IEA) estimates, China controls 44% of copper, 70% of lithium, 31% of nickel, 78% of cobalt, 95% of graphite, 91% of rare earth minerals and 91% of manganese refined production globally in 2024. Demand for critical minerals is set to rise, driven by the rapid deployment of energy technologies.

IEA estimates lithium demand will grow five-fold from today to 2040, while graphite and nickel demand are projected to double. Demand for cobalt and rare earth elements will increase 50-60% by 2040. Battery deployment in electric vehicles (EVs) and storage applications drives strong demand growth for these minerals. Meanwhile, expanding construction and the electrification of grids and industrial equipment are fuelling increased demand for copper. Growing demand for permanent magnets, particularly from EVs and wind power, boosts the need for magnet rare earths, says the IEA's Global Critical Minerals Outlook 2025.

Production and processing of many critical minerals are geographically concentrated, making the global supply vulnerable to several risks. China’s restrictions on certain critical minerals like magnates, the Russia-Ukraine War, and other issues show the fragility of critical mineral supply in globally and the need for diversifying sources.

NCMM‘s domestic plans

“We will set up a Critical Mineral Mission (CMM) for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets. Its mandate will include technology development, skilled workforce, extended producer responsibility framework, and a suitable financing mechanism,” Union Finance Minister Nirmala Sitharaman announced in her Union Budget speech, 2024-25.

The main components of NCMM are increasing domestic critical minerals production, acquisition of assets abroad, recycling and trade and strengthening the value chains by enhancing technological, regulatory, and financial ecosystems to foster innovation, skill development, and global competitiveness in mineral exploration, mining, beneficiation, processing, and recycling.

To increase domestic production, 1,200 exploratory projects will be explored, and over 100 sites or blocks will be auctioned during the Mission plan period. Another plan is to explore more CM bearing blocks in offshore areas and start mineral production. A fast-track regulatory approval process will be done for domestic critical minerals exploration and mining projects, besides promoting private participation with Exploration Licences (EL). Four critical mineral parks will be set up to encourage domestic production and refining.

So far, since 2023, a total of 34 blocks have been successfully auctioned in five tranches, out of 55 critical mineral blocks. The latest auctions in May comprised critical and strategic minerals such as Graphite, Phosphorite, Phosphate, Rare Earth Elements (REE), Vanadium, Potash and Halite, spread across Chhattisgarh, Karnataka, Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh.

A key milestone under Tranche V was the first-ever successful auction of a potash block in Rajasthan. The move is to catalyse potash mining in the country, reduce reliance on imports, and strengthen support to the agriculture sector. Winners in Tranche V included companies like Coal India, Vinmir Resources, RK Development, Sunflag Iron and Steel Company, NLC India, Ramgad Minerals and Mining, Hindustan Zinc and Oil India.

Assets abroad

Overseas asset acquisition is another priority component of the mission, to be led by 26 PSUs and 24 private Indian companies. PSU Khanji Bidesh (India) Ltd (KABIL) signed an agreement with the state-owned enterprise of Catamarca province of Argentina on January last year, the first ever project for lithium exploration and development of five adjacent lithium brine blocks covering an area of about 15,703 hectares.

It also signed an MoU with the Critical Mineral Office (CMO), Department of Industry, Science and Resources (DISER) of Australia for the exploration and production of lithium and cobalt, with investments and off-take arrangements. India is also part of the Mineral Security Partnership (MSP) project, a collaboration of 14 countries and EU. The current chair is the Republic of Korea. Now, MSP is considering 32 projects of Critical Minerals in different countries. Similar projects are also being undertaken under the Indo-Pacific Economic Framework (IPEF) and India-UK Technology and Security Initiative (TSI), and Quadrilateral Security Dialogue (Quad).

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