A strategic leap

The Union Cabinet’s approval of the National Critical Minerals Mission (NCMM), with an outlay of Rs 34,300 crore over seven years, is a decisive step toward securing India’s access to essential raw materials. These critical minerals — lithium, nickel, cobalt, and rare earth elements — are indispensable for clean energy, electronics and defence industries. Currently, India is highly dependent on imports, particularly from China, which dominates global processing and refining capabilities. The NCMM has the ambitious aim of decreasing this dependence through intensified domestic exploration, acquisition of overseas mineral assets and value-chain development. The government plans to fund 1,200 mineral exploration projects and auction over 100 mineral blocks by 2030-31.

The key to the mission’s success lies in its effective execution. Merely securing raw materials is not enough; India must invest in refining capabilities, streamline regulatory approvals and promote responsible mining. Additionally, mining expansion should not come at the cost of ecological degradation. As much as 5.9 million tonnes of lithium reserves have been discovered in Reasi, Jammu and Kashmir. While this find holds the potential to transform India’s battery industry, concerns persist over deforestation, groundwater depletion and displacement of local communities. Notably, insufficient exploration data has deterred industry players from bidding for the Reasi reserves. The more modest lithium block in Chhattisgarh is the only one to have been successfully auctioned.

Additionally, strengthening local manufacturing of batteries, electric vehicles and renewable energy infrastructure will be critical to reducing reliance on global supply chains. India must also expand its strategic partnerships with mineral-rich nations to ensure supply stability. It has partnered with Argentina for lithium exploration. Discussions with Australia, Chile and Bolivia are also on. Expanding such collaborations and securing long-term agreements will be crucial for building a resilient and self-sufficient critical minerals ecosystem.