India's Strategic Dependence on Critical Minerals

India’s critical minerals Challenge

Why It Matters

Strategic Dependence: India’s clean energy and e-mobility transition depends heavily on critical minerals such as lithium, cobalt, nickel, and rare earths. These are essential for EV batteries, wind turbines, solar panels, and advanced electronics.

Import Dependence: At present, India imports almost all of its requirements. With lithium demand projected to rise from 58 tonnes in 2030 to over 20,000 tonnes by 2047, the issue has become one of national security, industrial growth, and economic resilience.

Global Competition: The world is already in a “scramble” for critical minerals. China dominates refining, while developed nations are securing overseas mines. If India does not keep pace, it risks strategic and economic vulnerability.

Steps Taken

National Critical Minerals Mission (2025): Allocated ₹16,300 crore to secure domestic and overseas mineral sources.

Overseas Acquisitions: Khanij Bidesh India Ltd (KABIL) has been tasked with acquiring mines abroad, supported by a ₹4,500 crore war chest. Amendments to the Mines and Minerals Act now allow use of the National Mineral Exploration Trust funds for foreign acquisitions.

Stockpiling & Recycling: ₹500 crore allocated to build reserves against supply shocks, plus ₹1,500 crore in incentives for recycling critical minerals from used equipment.

Exploration & Auctions: 1,200 exploration projects and 100 mineral block auctions are planned by 2031 to boost domestic availability.

Deep Sea Mission: Focused on harvesting polymetallic nodules—rich in cobalt, nickel, copper, and manganese—from the Indian Ocean floor.

Key Limitations

Deep-Sea Delays: Mining under the ocean faces environmental concerns, fragile ecosystem risks, and major technological challenges.

Refining Bottleneck: China controls the bulk of global refining, while India lacks sufficient refining capacity. Without local facilities, raw minerals will continue to be exported for processing.

Rare Earth Gaps: Elements like neodymium, critical for permanent magnets, are scarce and largely controlled by China. India lags in refining expertise and investment.

Execution Risks: Despite funding and policy support, successful outcomes hinge on regulatory clarity, efficient implementation, and timely completion of projects.

Conclusion

India’s renewable energy and e-mobility roadmap rests on access to critical minerals. The National Critical Minerals Mission has introduced ambitious measures—ranging from overseas acquisitions to recycling, auctions, and deep-sea exploration. Yet, without scaling up domestic refining capacity, addressing environmental risks, and reducing dependence on China, India’s strategy will remain incomplete.

Critical minerals are not just raw materials; they are the foundation of India’s green energy transition, industrial competitiveness, and strategic security.