India’s Critical Minerals Strategy: Fueling Green Growth and Strategic Autonomy

As of April 2026, India stands at a crucial juncture in its journey towards becoming a global economic powerhouse and achieving its net-zero emissions targets by 2070. Central to this ambition is the secure and sustainable access to Critical Minerals. These are elements indispensable for advanced technologies, renewable energy systems, electric vehicles, defence, and telecommunications. From lithium for EV batteries to rare earth elements for permanent magnets in wind turbines, their availability directly impacts India’s manufacturing competitiveness, energy independence, and national security. The global scramble for these resources, driven by rapid technological advancements and geopolitical realignments, underscores the urgency for a comprehensive national strategy.

India’s economic future and strategic autonomy hinge on securing a robust critical mineral supply chain.

India’s current critical mineral landscape is characterized by significant import dependence, particularly for key minerals like lithium, cobalt, and nickel. This dependence stems from several root causes. Firstly, a historical lack of comprehensive domestic exploration and extraction, largely due to insufficient geological mapping and investment in advanced exploration technologies. Secondly, the global supply chain for many critical minerals is highly concentrated, with a few nations dominating mining, processing, and refining, creating significant geopolitical vulnerabilities. This concentration is a key aspect of geopolitical contests for green future dominance. Thirdly, the capital-intensive nature of critical mineral projects, coupled with long gestation periods, deters private sector investment without robust policy support. Environmental and social concerns associated with mining also pose challenges, requiring sustainable practices. Finally, technological gaps in processing complex ores and developing recycling infrastructure further exacerbate the reliance on external sources, hindering value addition domestically.

The lack of a robust domestic critical mineral ecosystem carries profound economic implications for India. High import dependence translates into significant foreign exchange outflows, straining the current account deficit and exposing the economy to global price volatility and supply disruptions. This directly impacts the cost and pace of India’s green energy transition, making renewable energy technologies and electric vehicles more expensive and less competitive. Furthermore, it hinders the “Make in India” initiative, as industries reliant on these minerals struggle to establish domestic manufacturing bases without secure, affordable inputs. Geopolitically, it leaves India vulnerable to strategic leverage by mineral-rich nations or those controlling processing capabilities, potentially compromising national security and foreign policy objectives. Delays in securing these minerals could also decelerate India’s progress in high-tech manufacturing, eroding its aspirations for global leadership in sunrise sectors.

Recognizing these challenges, India has significantly ramped up its policy and institutional responses. The landmark Mines and Minerals (Development and Regulation) Amendment Act, 2023, was a pivotal step, facilitating private sector participation in the exploration and mining of 24 critical minerals by introducing a revenue-sharing model for exploration licenses and allowing composite licenses. The government identified 30 critical minerals essential for India’s economy and national security. Khanij Bidesh India Ltd. (KABIL), a joint venture of three public sector undertakings, has been mandated to identify, acquire, explore, develop, and process overseas critical mineral assets. India has also forged strategic partnerships with countries like Australia and Argentina to secure lithium and cobalt assets. Recent auctions of critical mineral blocks, including lithium and rare earth elements, signify a proactive approach to domestic resource mobilization and de-risking supply chains, aiming to build a resilient mineral ecosystem.

To truly achieve self-reliance and leadership in critical minerals, India must embrace innovation across the entire value chain. This includes adopting advanced exploration technologies like hyperspectral imaging and AI-driven data analytics to identify new deposits more efficiently, including unconventional sources. Investing in deep-sea mining exploration, while carefully navigating environmental considerations, could unlock significant mineral reserves, linking to the broader discourse on deep-sea mining and ocean health. A robust circular economy model, focusing on urban mining and recycling of end-of-life products (e.g., EV batteries, electronics), is crucial to reduce primary demand. R&D in mineral processing technologies, especially for complex and low-grade ores, and substitution technologies to reduce reliance on specific critical minerals, are also vital. Fostering a skilled workforce through specialized training programs and encouraging private sector innovation through incentives and regulatory clarity will be key enablers.

The Indian government, based on a NITI Aayog report, identified 30 critical minerals in 2023. India currently imports nearly 100% of its lithium and cobalt, crucial for its burgeoning EV sector, which is projected to grow exponentially. The global market for critical minerals is estimated to reach over $400 billion by 2030. The Geological Survey of India (GSI) has been instrumental in preliminary surveys, identifying potential reserves. KABIL has been actively pursuing acquisition opportunities in countries like Argentina (lithium) and Australia (lithium, cobalt). Recent auctions in late 2025 and early 2026 saw significant private sector interest in blocks containing lithium, graphite, and rare earth elements, signalling a positive shift in domestic exploration and mining. These initiatives are crucial for scaling up India’s green energy infrastructure, including advanced technologies like Small Modular Reactors, which also have critical mineral requirements.

India’s National Strategy for Critical Minerals is intricately linked with several overarching national objectives. It is a cornerstone of the “Atmanirbhar Bharat” (Self-Reliant India) vision, aiming to reduce strategic vulnerabilities and build domestic industrial capabilities. The success of “Make in India” in sectors like electronics, defence, and electric vehicles is directly contingent upon a secure and affordable supply of these minerals. Furthermore, it is indispensable for achieving India’s ambitious Net Zero by 2070 target, as the energy transition relies heavily on renewable energy technologies and battery storage, all mineral-intensive. Geopolitically, securing critical minerals enhances India’s strategic autonomy, reducing its susceptibility to supply chain weaponization and enabling a more assertive foreign policy. It also strengthens India’s position in global forums discussing resource governance and sustainable development, aligning economic growth with environmental stewardship and national security.

As of April 2026, the second round of auctions for critical mineral blocks, following the successful first round in late 2025, is underway, attracting significant domestic and international bidders. KABIL recently announced a new joint venture with an Australian entity for lithium exploration in Western Australia, further diversifying India’s overseas asset portfolio. Diplomatic engagements with African nations, known for their cobalt and graphite reserves, have intensified, exploring government-to-government agreements and joint ventures. The Ministry of Mines is also formulating a comprehensive Critical Minerals Policy, expected to be unveiled later this year, which will outline long-term strategies for R&D, skill development, and incentive structures for private investment. Discussions around establishing a dedicated Critical Minerals Research Institute, fostering collaboration between academia, industry, and government, are also gaining momentum, highlighting India’s holistic approach.

1. Critically analyze the multi-dimensional challenges India faces in securing critical minerals and evaluate the effectiveness of the National Strategy for Critical Minerals in addressing them. (15 marks)
2. Discuss the economic and geopolitical implications of India’s import dependence for critical minerals. How can a circular economy approach mitigate these risks? (10 marks)
3. Examine the role of policy reforms (e.g., MMDR Act, 2023) and institutional frameworks (e.g., KABIL) in strengthening India’s critical mineral supply chain. (15 marks)
4. “India’s Net Zero targets and ‘Make in India’ initiative are intrinsically linked to its critical mineral strategy.” Elaborate on this statement with suitable examples. (10 marks)
5. Suggest innovative strategies, including technological advancements and international collaborations, for India to achieve self-reliance in critical minerals by 2047. (15 marks)

GS-III: Indian Economy and issues relating to planning, mobilization of resources, growth, development. Infrastructure: Energy, Ports, Roads, Airports, Railways etc. Investment models. Science and Technology – developments and their applications and effects in everyday life. Indigenization of technology and developing new technology.

5 Key Ideas:
1. Resource Security: Ensuring uninterrupted access to vital minerals.
2. Energy Transition: Catalyzing India’s shift to renewable energy.
3. Circular Economy: Maximizing resource utilization through recycling and reuse.
4. Strategic Autonomy: Reducing geopolitical vulnerabilities and strengthening national security.
5. Value Chain Integration: Developing domestic capabilities from exploration to processing and manufacturing.

5 Key Economic Terms:
1. Rare Earth Elements (REEs): A group of 17 chemically similar metallic elements vital for high-tech applications.
2. Mineral Security Partnership (MSP): A US-led initiative to secure critical mineral supply chains among partner nations.
3. Upstream/Downstream: Upstream refers to exploration and mining; downstream refers to processing, refining, and manufacturing.
4. Value Addition: Enhancing the economic value of raw materials through processing and manufacturing.
5. Green Premium: The additional cost of choosing a clean technology over one that emits more carbon.

5 Key Issues:
1. Supply Chain Concentration: Dominance of a few countries in mining/processing.
2. Technology Gap: Insufficient domestic expertise in advanced exploration and processing.
3. Environmental Impact: Challenges of sustainable mining practices.
4. Capital Intensity: High investment required for exploration and mining.
5. Geopolitical Leverage: Risk of mineral-rich nations using resources as strategic tools.

5 Key Examples:
1. Lithium: Essential for Electric Vehicle (EV) batteries.
2. Cobalt: Used in high-performance batteries and superalloys.
3. Graphite: Crucial for EV anodes and nuclear reactors.
4. Neodymium: A rare earth element vital for permanent magnets in wind turbines and EVs.
5. Copper: Fundamental for electrical wiring, renewable energy infrastructure.

5 Key Facts/Data:
1. 30 Critical Minerals: Identified by the Indian government based on NITI Aayog report.
2. ~100% Import Dependence: For Lithium and Cobalt in India.
3. ~90% Global REE Refining: Controlled by a single country.
4. KABIL: Joint venture of NALCO, HCL, MECL for overseas acquisition.
5. MMDR Act, 2023: Amended to allow private sector participation in critical mineral mining.