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As global tech race heats up, India launches $4 bn drive for self-reliance in critical minerals
Program aims to secure India's supply of critical minerals used in battery production, electronics, defense, and agriculture through local mining, foreign acquisitions, and recycling
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The government has given the green signal to the National Critical Mineral Mission, which entails an allocation of $1.9 billion from the Center and another $2.1 billion in investments, to achieve economic self-reliance.
The combined $4 billion program aims to secure supplies of a range of critical minerals used mainly in battery, electronics, defense and agriculture sectors through local mining and processing, acquisitions abroad, and even recycling.
The initiative will focus on local mining of 24 key minerals, apart from acquisitions of mining blocks overseas, information and broadcasting minister Ashwini Vaishnaw said, adding that the mission will run over six years in its initial phase.
The program will also put emphasis on the recycling of materials such as lithium, cobalt, potash and graphite, to help cut India’s reliance on imports, Vaishnaw said.
“The mission will intensify the exploration of critical minerals within the country and in its offshore areas. It aims to create a fast track regulatory approval process for critical mineral mining projects. Additionally, the mission will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings,” the ministry of mines said in a statement.
The government also aims to create a fast-track regulatory approval process for projects, including exploration of critical minerals within the country and in offshore areas, besides offering sops to promote the recovery of such materials from mining waste, it said.
The government will encourage state-run and private-sector companies to acquire critical mineral assets abroad and enhance trade with resource-rich countries, according to the statement.
Khanij Bidesh India Ltd (KABIL), a joint venture of the ministry of mines, has acquired an area of about 15703 ha in the Catamarca province of Argentina, for exploration and mining of lithium, the statement added.
The approval for the mission, which was announced by finance minister Nirmala Sitharaman in the FY25 budget in July following the general election, comes ahead of the presentation of the budget for FY26 on Saturday, 1 February.
The government’s approval comes amid intense competition in the global technology race for critical resources in battery, electronics, defense, agriculture, and particularly artificial intelligence (AI) systems.
In July 2023, the government had identified and released a list of 30 critical minerals: Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium and Cadmium.
Supply chains for critical minerals are increasingly vulnerable to disruptions and their scarcity, given they are located in specific geographic regions across the world, has led to their strategic importance across multiple industries.
Moreover, high import dependency and reliance on these critical minerals hampers economic progress.
At present, India is working to advance its lithium processing capabilities—a field currently led by China—and has sought technical expertise from countries such as Australia, Russia, and the United States. To boost domestic production, India launched its inaugural critical minerals auction in late 2023, offering 48 blocks for development through 2024. However, only half of these blocks attracted successful bids.
The mission is expected to intensify the exploration of critical minerals within the country and in offshore areas. The development of mineral processing parks and stockpiles of critical minerals within the country is also part of the plan.
The elimination of customs duties on most critical minerals, announced in the Budget 2024 is expected to boost domestic processing capabilities.
“This will increase the availability of critical mineral in the country and will encourage the industry to set up processing facilities in India. These initiatives highlight India’s commitment to securing critical mineral supplies,” the ministry statement added.