Body
I. Critical Minerals and Their Strategic Importance
1. Energy Security and Clean-Energy Transition
- India's transition towards renewable energy, electric mobility and battery storage will substantially increase demand for lithium, cobalt, nickel, graphite and copper. Any disruption in their supply can therefore slow India's decarbonisation efforts and increase the cost of achieving its climate and energy objectives.
- Example: Under a net-zero pathway, India's cumulative demand for critical energy-transition minerals could reach around 169 million tonnes by 2070, significantly above the current-policy pathway.
2. Industrial Competitiveness and Technological Security
- Critical minerals are foundational to batteries, semiconductors, wind turbines, electronics, telecommunications and advanced manufacturing. Hence, shortages or price volatility can disrupt industrial production, increase manufacturing costs and undermine India's ambitions to become a global manufacturing hub.
- Example: Copper is indispensable for electricity grids and renewable-energy infrastructure, while rare earths are essential for high-performance magnets used in several advanced technologies.
3. Defence and National Security
- Rare earths and other critical minerals have applications in aerospace, precision-guided systems, radar, communication systems and advanced military platforms. Dependence on external suppliers can therefore create vulnerabilities in India's defence-industrial ecosystem and constrain strategic autonomy.
4. Geopolitical Leverage and Supply-Chain Vulnerability
- Critical mineral production and, particularly, processing are geographically concentrated. China is the dominant processor of several strategic minerals, while Indonesia has a major position in nickel supply. Such concentration allows mineral supply chains to become instruments of geopolitical influence.
- Example: China's rare-earth export controls announced in 2025 generated concerns across the automotive, defence, aerospace, semiconductor and AI sectors.
II. India's Vulnerabilities Despite Domestic Mineral Potential
1. Resource Availability Does Not Ensure Supply Security
- India possesses significant geological potential in minerals such as cobalt, copper, graphite and nickel, besides monazite deposits containing rare earth oxides. However, India remains dependent on imports for several critical minerals, particularly lithium, cobalt and nickel.
2. The Processing and Refining Gap
- The principal weakness lies increasingly in the midstream rather than merely the upstream sector. India has experience in bulk-mineral production but has limited capacity for high-purity processing and refining of several critical minerals.
- Example: In 2024, China accounted for over 90% of rare-earth and graphite processing, demonstrating that control over processing can be as strategically important as control over mining.
3. Exploration and Regulatory Constraints
- Exploration remains relatively limited, while lengthy regulatory clearances, inadequate geological data, difficult terrain and weak private-sector participation constrain the development of domestic resources. Remote-region projects also face challenging economics and infrastructure deficits.
4. Limited Recycling Capacity
- Recycling can reduce import dependence and environmental pressures, but India's recycling ecosystem faces constraints relating to collection, technology, processing capacity and availability of economically viable feedstock. Therefore, recycling cannot completely substitute primary mineral supplies in the immediate future.
III. India's Emerging Policy Response
1. National Critical Mineral Mission
- India has identified 30 critical minerals and launched the National Critical Mineral Mission to strengthen the entire value chain. The Mission seeks to expand domestic exploration, increase production, develop processing capabilities and promote recycling.
2. Overseas Resource Acquisition
- India is simultaneously pursuing mineral assets abroad to diversify supply sources.
- Example: Khanij Bidesh India Limited (KABIL) has secured 15,703 hectares in Argentina's Catamarca province for lithium exploration, reflecting India's effort to build overseas mineral security.
3. International Partnerships
- India is increasingly using diplomatic and strategic partnerships to diversify mineral supply chains and reduce dependence on individual countries.
- Example: The India-US critical minerals and rare earths framework of May 2026 provides an additional platform for cooperation in resilient supply chains.
IV. Way Forward
1. Build an Integrated Mine-to-Manufacturing Ecosystem
- India must move beyond extraction and develop domestic capabilities in processing, refining, high-purity production and downstream manufacturing. Targeted incentives, infrastructure support and technology partnerships can help establish competitive midstream industries.
2. Diversify Supply and Build Strategic Reserves
- India should combine domestic exploration with overseas mineral assets across geographically diverse and trusted partners. Strategic stockpiles should be created for minerals facing high geopolitical and supply risks.
3. Promote Recycling and Circularity
- Battery recycling, e-waste recovery and urban mining should be integrated into national mineral planning. This can progressively reduce pressure on primary extraction and enhance long-term resource efficiency.
4. Strengthen Exploration and Private Participation
- Better geological data, faster clearances, predictable regulations and appropriate risk-sharing mechanisms are necessary to attract private investment into mineral exploration and processing.
5. Establish an Integrated Institutional Framework
- Mineral security should be coordinated across the ministries and agencies dealing with mines, commerce, industry, energy, defence, environment and external affairs, with mineral-specific risk thresholds and measurable supply-security targets.
Conclusion
Critical minerals have transformed mineral availability from a conventional resource issue into a question of economic resilience, technological competitiveness and national security. For India, the strategic objective should therefore be to move from resource dependence to value-chain capability; from exploration and extraction to refining, recycling and manufacturing. A diversified and resilient critical-mineral ecosystem will be essential for achieving energy transition, strategic autonomy and Atmanirbhar Bharat.
