Shift of Critical Minerals to India’s Strategic Centre
Context
- Earlier, critical minerals were not a major part of India’s strategic policy. Minerals like lithium were classified as atomic minerals, limiting private participation. Recently, policy reforms and Union Budgets have made critical minerals central to India’s industrial growth, energy transition, and strategic security. India is now focusing on implementation rather than policy design.
Background
Critical minerals such as lithium, cobalt, nickel and rare earth elements are essential for:
- Electric vehicles
- Solar panels and wind turbines
- Batteries
- Electronics
- Defence equipment
Global supply chains are concentrated in a few countries, especially China, creating supply risks. Therefore, mineral security has become important for India.
Critical Minerals – Definition
- Critical minerals are minerals that are essential for economic development and national security but have supply risks.
Features
- Essential for modern technology
- Limited substitutes
- Concentrated supply
- Strategic importance
Examples of Critical Minerals
| Mineral | Use |
| Lithium | EV batteries |
| Cobalt | Battery storage |
| Rare earths | Electronics & defence |
| Copper | Electrical equipment |
| Graphite | Batteries |
Policy Shift in India
- India has developed a structured policy for mineral security.
Major Steps
- Identification of 30 critical minerals
- Private sector exploration allowed
- Royalty rates rationalised
- Import duty reductions
- Processing industries encouraged
National Critical Mineral Mission (2025)
- Outlay: ₹16,300 crore
- Focus on exploration and processing
- Supply chain security
Challenges
Domestic Challenges
- High investment cost
- Long project timelines
- Limited refining capacity
Global Challenges
| Area | Dominance |
| Rare earth processing | China (~90%) |
| Lithium refining | China |
| Battery materials | China |
- Dependence on imports creates strategic risks.
India’s Strengths
India already produces:
- High-purity copper
- Graphite
- Rare earth oxides
- Titanium
Advantages
- Skilled workforce
- Growing industries
- Large domestic market
Priority Areas
- Domestic Demand
- Demand from industries will support mineral sector growth:
-
- Electric vehicles
- Batteries
- Solar energy
- Wind energy
- Exploration
Target:
- 1,200 exploration projects by 2031
- Use of AI and geospatial data can improve mineral discovery.
- International Cooperation
India needs partnerships with:
- Australia
- Japan
- USA
- European countries
- For:
- Technology
- Investment
- Supply chains
Way Forward
- Increase domestic mining
- Develop refining industries
- Promote EV and renewable energy
- Use AI in exploration
- Strengthen global partnerships
Conclusion
- Critical minerals have become central to India’s energy security, industrial growth and strategic autonomy. Effective implementation of policies and technological development will help India build a strong and secure mineral supply chain.
