Title: India Launches National Critical Mineral Mission with $4 Billion Boost to Power Green Transition

India has unveiled a landmark National Critical Mineral Mission (NCMM), committing over Rs. 34,000 crore (approximately $4 billion) to secure essential minerals vital for its clean energy and green technology goals. This strategic initiative aims to dramatically enhance domestic critical mineral production, strengthen global mineral supply chains, and foster innovation and recycling capabilities, marking a decisive step in India’s green energy transition and self-reliance efforts.

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National Critical Mineral Mission: A Game Changer for India’s Energy Future

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the National Critical Mineral Mission in January 2025 with a government expenditure commitment of Rs. 16,300 crore and an additional Rs. 18,000 crore expected from public sector undertakings (PSUs) and private investments, totaling Rs. 34,300 crore over seven years (FY 2024-25 to FY 2030-31)[1][3][4].

Why Critical Minerals Matter for India

Critical minerals such as lithium, cobalt, nickel, copper, and rare earth elements are indispensable for manufacturing electric vehicles (EVs), renewable energy infrastructure, battery storage systems, and cutting-edge technologies. As India aims for net-zero greenhouse gas emissions by 2070 and targets 50% electric power generation capacity from non-fossil sources by 2030, securing a stable supply of these minerals is vital[2][4].

India currently imports almost 100% of key critical minerals like lithium, cobalt, and nickel, creating significant vulnerabilities given geopolitical tensions and supply disruptions worldwide[3][4][5]. The mission’s holistic approach focuses on reducing import dependence, expanding domestic extraction, and building resilient supply chains.

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Core Components of the National Critical Mineral Mission

The NCMM encompasses a comprehensive agenda covering all facets of the critical minerals value chain:

1. Boosting Domestic Exploration and Production

• Geological Survey of India (GSI) has launched 368 exploration projects over the past three years, with plans for 1,200 additional projects by 2031.
• Auctioning of 24 strategic mineral blocks recently and plans to auction over 100 more by 2031.
• Financial incentives and fast-track regulatory approval processes to accelerate mining and beneficiation.
• Development of mineral processing parks to localize refining capabilities[1][2][3].

2. Overseas Asset Acquisition

• Indian PSUs, through joint ventures like Khanij Bidesh India Ltd (KABIL), are encouraged to acquire critical mineral assets abroad, diversifying supply sources.
• The government earmarks funds and sets policies to facilitate international exploration and mining collaborations.
• Ministry of External Affairs (MEA) support in engaging foreign regulators to strengthen mineral evacuation infrastructure[1][2][5].

3. Recycling and Circular Economy Initiatives

• Promoting recovery of critical minerals from end-of-life products, mining tailings, fly ash, and red mud.
• Targets to ensure 20% of new batteries by 2030 are made from recycled materials.
• Plans to vastly expand lithium battery recycling capacity to meet surging demand from India’s EV ambitions[3][4][5].

4. Research, Development, and Innovation

• Funding of Rs. 500 crore dedicated to R&D in critical mineral technologies.
• Establishing Centres of Excellence to advance mineral exploration, extraction, and processing technologies.
• Support for startups and MSMEs through programs like S&T PRISM to bridge the gap between research and commercialization[1][3].

5. Strategic Stockpile Creation and Trade Partnerships

• Allocation of Rs. 500 crore to build strategic reserves of critical minerals.
• Reinforcing trade agreements and partnerships with resource-rich countries to ensure supply chain resilience.
• Engagement in global mineral security initiatives such as the Minerals Security Partnership (MSP) and Critical Raw Materials Club to reduce dependence on dominant suppliers like China[1][3][5].

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Addressing India’s Mineral Import Vulnerabilities

India’s heavy reliance on imports—particularly from China, which dominates the global critical minerals market—poses risks amid growing geopolitical tensions and trade uncertainties. For example, India depends on China for over 80% of its lithium and cobalt imports and substantial shares of graphite and other minerals[3][5].

The NCMM’s multi-pronged strategy aims to:

• Diversify import sources by engaging with multiple resource-rich countries and acquiring overseas assets.
• Expand domestic resource mapping and exploitation, including offshore polymetallic nodules with cobalt and rare earth deposits.
• Enhance processing infrastructure to reduce the need to export raw ores for refining abroad.
• Build capacity in mineral recycling to reduce virgin material demand[1][3][5].

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India’s Ambitious Green Transition Goals Drive Mineral Demand

India’s commitment to reducing emission intensity of GDP by 45% by 2030 (from 2005 levels) and achieving 30% electric vehicle sales by 2030 will significantly escalate demand for critical minerals:

| Mineral | Expected Demand Growth by 2047 | |---------------|--------------------------------| | Copper | Nearly 6-fold | | Nickel | 11-fold | | Lithium, Cobalt| High surge expected |

Copper and nickel are crucial for solar panels, wind turbines, EV batteries, and electronics, making their availability critical to India’s green energy ambitions[2][4].

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Incentives and Policy Reforms Fueling the NCMM

The government has introduced several supportive measures to make the mission successful:

• Abolished customs duties on most critical minerals to encourage domestic processing industries.
• Amended the Mines and Minerals (Development and Regulation) Act, 1957 in 2023 to facilitate private sector participation and faster approvals.
• Launched production-linked incentives (PLI) schemes to encourage investment in mineral recycling.
• Enabled a whole-of-government approach linking ministries, PSUs, private sector, and research institutions to synergize efforts[1][2][5].

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Challenges and the Road Ahead

While India’s NCMM is a bold and comprehensive initiative, challenges remain:

• Developing technological capacity for extracting and processing complex mineral deposits, such as lithium from clay.
• Building skilled workforce for advanced mining and recycling technologies.
• Overcoming long gestation periods between mineral discovery and commercial mining.
• Ensuring environmental sustainability in mining and mineral processing.

Experts like Sandeep Pai of Swaniti Global emphasize the mission’s focus on R&D as a positive driver to overcome such hurdles and eventually reduce India’s import dependency[3].

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Conclusion

India’s launch of the National Critical Mineral Mission marks a historic commitment to securing the country’s mineral needs vital for its green energy transition, economic resilience, and technological advancement. By boosting domestic exploration, facilitating overseas acquisitions, promoting recycling, and supporting innovation through robust incentives and regulatory reforms, India is poised to build a self-reliant, globally competitive critical mineral ecosystem.

This mission not only strengthens India’s energy security but also positions the country as a key player in the international race for critical minerals that underpin the global clean energy revolution.

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