India approves Rs 34,300cr National Critical Mineral Mission to strengthen mineral supply chain

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In a landmark move to secure ‘s critical mineral supply chain, the Union Cabinet, led by Prime Minister Narendra Modi, has approved the (NCMM) with a financial commitment of ₹34,300 crore over seven years. The initiative aims to bolster India’s critical mineral exploration, mining, and processing capabilities, ensuring self-reliance in essential resources for green technologies, high-tech industries, and national security.

The mission will be funded through ₹16,300 crore in direct government expenditure, with an additional ₹18,000 crore investment expected from public sector undertakings (PSUs) and private companies. This strategic push aligns with the vision, which seeks to reduce India’s dependence on imported critical minerals while enhancing domestic capabilities in mineral exploration and processing.

Why Are Critical Minerals Essential for India’s Green Transition?

Critical minerals, such as lithium, cobalt, nickel, and rare earth elements, are the backbone of modern technologies, including electric vehicle (EV) batteries, renewable energy storage, semiconductors, and aerospace components. These minerals play a pivotal role in India’s clean energy transition, supporting the expansion of solar panels, wind turbines, and advanced battery systems.

However, global supply chain disruptions and geopolitical tensions have underscored the risks of over-reliance on foreign sources for these strategic resources. Recognising this, the National Critical Mineral Mission aims to establish a robust domestic supply chain by ramping up critical mineral exploration and processing within the country and through overseas acquisitions.

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How Will the National Critical Mineral Mission Secure India’s Resource Independence?

The National Critical Mineral Mission is structured to cover every stage of the critical mineral value chain, ensuring efficient resource utilisation and supply security. The mission includes:

  • Expanding domestic exploration: India will intensify critical mineral exploration across its land and offshore territories, identifying new deposits to reduce reliance on imports.
  • Accelerating mining approvals: The government will implement a fast-track regulatory approval process to facilitate timely extraction and processing of these minerals.
  • Encouraging strategic acquisitions: Indian PSUs and private sector companies will be incentivised to acquire mineral assets abroad, strengthening global partnerships with resource-rich nations.
  • Boosting mineral processing and recycling: Investments will be directed towards setting up mineral processing parks, promoting recycling of critical minerals from industrial waste, and establishing a Centre of Excellence on Critical Minerals to drive innovation.
  • Stockpiling essential minerals: The government will develop strategic mineral reserves to safeguard against future supply chain shocks.

What Policy Measures Are Supporting India’s Critical Mineral Strategy?

To create a strong critical mineral supply chain, India has introduced several legislative and policy reforms. The Mines and Minerals (Development and Regulation) Act, 1957, was amended in 2023, paving the way for increased private sector participation in critical mineral exploration and mining. As a result, the Ministry of Mines has auctioned 24 strategic mineral blocks, expanding India’s access to rare earth elements, lithium, and other key resources.

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The Geological Survey of India (GSI) has significantly ramped up its exploration activities, with 368 critical mineral projects launched in the past three years. Of these, 195 projects are currently active for FY 2024-25, with another 227 exploration projects planned for FY 2025-26. These efforts will be instrumental in identifying new reserves and strengthening India’s critical mineral security.

How Will India’s Global Investments Secure Lithium and Other Essential Resources?

Given the high demand for lithium in the EV and energy storage industries, India has intensified efforts to secure lithium reserves abroad. The Khanij Bidesh India Limited (), a joint venture under the Ministry of Mines, has acquired 15,703 hectares in Argentina’s Catamarca province for lithium exploration and extraction. This acquisition marks a crucial step in ensuring India’s long-term access to lithium, a key component in advanced battery technology.

Additionally, the Government of India has eliminated customs duties on critical minerals in the Union Budget 2024-25, making it more cost-effective for industries to import essential raw materials while incentivising companies to set up processing facilities within India. These measures are expected to enhance domestic production capacity and strengthen India’s position in the global critical minerals market.

How Will the National Critical Mineral Mission Impact India’s Economy and Industries?

The approval of the National Critical Mineral Mission is set to transform India’s industrial landscape, driving growth across multiple sectors. The mission is expected to:

  • Boost India’s electric vehicle industry by ensuring a stable supply of lithium and nickel for battery manufacturing.
  • Strengthen the renewable energy sector by securing rare earth elements required for wind turbines and solar panels.
  • Enhance the defence and aerospace industries by ensuring access to critical minerals essential for advanced military technology.
  • Encourage private investment and innovation by providing financial incentives for start-ups, MSMEs, and research institutions working on critical mineral technologies.
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What’s Next for India’s Critical Mineral Strategy?

The National Critical Mineral Mission marks a significant shift in India’s resource strategy, ensuring long-term sustainability in an era of intensifying global competition for minerals. By combining domestic exploration, international acquisitions, and policy reforms, the government is positioning India as a key player in the critical mineral supply chain.

As the mission unfolds, collaboration between ministries, PSUs, private enterprises, and research institutions will be crucial in achieving its objectives. The initiative is set to play a transformative role in securing India’s energy future, advancing high-tech industries, and enhancing national security in the decades to come.


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