Why in news?
India’s clean‑energy ambitions and recent export restrictions by major suppliers have placed critical minerals – such as lithium, cobalt and rare earth elements – at the centre of economic policy. The government is setting up a National Critical Minerals Mission (NCMM) to secure supplies and reduce import dependence.
What are critical minerals?
Critical minerals are raw materials essential for modern technologies and national security but are vulnerable to supply disruptions because of limited reserves or concentrated production in a few countries. They include lithium and cobalt for batteries, rare earth elements for wind turbines and electronics, and silicon for solar panels.
Why they matter for India
- Energy transition: Electric vehicles, solar panels and wind turbines all require large quantities of critical minerals. India currently imports almost all of its lithium, cobalt and rare earths, making the energy transition vulnerable to price shocks and geopolitical tensions.
- Technological sovereignty: Semiconductors, telecom equipment, defence systems and satellites rely on critical minerals. Securing supplies is key to reducing dependence on dominant suppliers, particularly China.
- Geopolitical leverage: Controlling part of the supply chain strengthens India’s bargaining power in the Quad, G20 and other strategic forums.
India’s policy response
- National Critical Minerals Mission: Established under the Ministry of Mines, the mission aims to explore domestic deposits, invest in overseas assets, develop processing and refining capabilities and create strategic stockpiles.
- Legislative reforms: Amendments to the Mines and Minerals (Development and Regulation) Act allow auction of 30 critical minerals. Five auction rounds have been completed with more than 400 exploration projects planned.
- International partnerships: India has joined the Mineral Security Partnership with the US, Australia and others; it has also signed agreements with Argentina and Bolivia for lithium and is collaborating with Russia, Kazakhstan and African countries for rare earths.
Challenges and way forward
- Limited domestic capacity: Exploration is still at an early stage and India lacks processing and refining infrastructure. Public–private partnerships and technology transfer are crucial.
- Environmental and social concerns: Many mineral deposits lie in ecologically sensitive or tribal areas. Mining must adhere to strict environmental, social and governance (ESG) standards and ensure that local communities benefit.
- Circular economy: Developing formal recycling systems for batteries and electronic waste will reduce dependence on virgin minerals. Incentives for collection, dismantling and recycling can spur a secondary supply chain.
Critical minerals underpin India’s vision of Atmanirbharta (self‑reliance) in technology and clean energy. A holistic approach that balances exploration, sustainability and international cooperation will help realise this vision.