Critical minerals are minerals essential for economic development and national security, whose supply is vulnerable because of geographical concentration, limited domestic availability or geopolitical risks. India identified 30 critical minerals in 2023, based on economic importance and supply risk. 

Why Are Critical Minerals Critical?

• Economic importance: Essential for industries such as electronics, automobiles, telecommunications and advanced manufacturing.
• Energy transition: Crucial for EV batteries, renewable energy, electricity grids and energy storage.
• Strategic & defence importance: Used in aircraft, missiles, satellites, radar, magnets and advanced weapons systems.
• Supply-chain vulnerability: Production and processing are concentrated in a few countries, making supplies vulnerable to geopolitical tensions and export restrictions.
• Limited alternatives: Many critical minerals have low substitutability, making disruptions difficult to manage.

India’s Concerns Regarding Critical Minerals

• High import dependence – India is heavily dependent on imports for minerals such as lithium, cobalt and nickel, creating vulnerability to external shocks.
• Geographical concentration – Mining and especially processing/refining are concentrated in a few countries, making India vulnerable to geopolitical tensions and export restrictions.
• Limited domestic exploration – India has significant potential, but exploration and commercial production of many critical minerals remain inadequate; hence, accelerating exploration is a major priority.
• Processing & technology gap – India needs greater capacity in beneficiation, refining, separation and advanced processing, rather than merely securing raw mineral supplies.
• Weak recycling ecosystem – Recovery of critical minerals from e-waste, batteries, tailings and industrial waste remains underdeveloped, increasing dependence on primary imports.

Government Initiatives

• National Critical Mineral Mission (NCMM), 2025 – ₹34,300 crore overall framework; covers the entire value chain from exploration → mining → processing → recycling.
• MMDR Amendment, 2023 – 24 critical minerals brought under Part D; Centre empowered to auction their mining blocks, facilitating faster exploration and production.
• KABIL – Government JV created to acquire critical-mineral assets overseas, including lithium resources in Argentina.
• Critical Mineral Recycling Scheme – ₹1,500 crore incentive scheme for recovering minerals from e-waste, spent batteries and industrial scrap.
• International partnerships & stockpiling – India is pursuing overseas resource partnerships and developing strategic mineral stockpiles to manage supply disruptions.

Way Forward

• Diversify supply chains – Reduce dependence on a few countries through partnerships with resource-rich nations.
• Move up the value chain – Build domestic capacity in beneficiation, refining and advanced processing, not merely mining.
• Promote circular economy – Scale up battery/e-waste recycling and urban mining.
• Boost R&D – Develop indigenous extraction, processing and substitution technologies through universities, industry and Centres of Excellence.
• Ensure sustainable mining – Combine faster clearances with environmental safeguards, community participation and responsible mining.

Critical minerals are the building blocks of India’s green transition, digital economy and strategic security. However, import dependence and concentrated global supply chains create vulnerabilities. India must therefore pursue a “Mine–Process–Manufacture–Recycle” strategy, combining domestic exploration, diversified international partnerships, technological innovation and sustainable mining. This will strengthen Atmanirbhar Bharat, energy security and India’s strategic autonomy while supporting its long-term development goals.