With a ₹34,300 crore investment, India aims to secure domestic critical mineral supply chains essential for electric vehicles, renewable energy, and advanced technology sectors.
India is accelerating its efforts to secure a domestic supply of critical minerals essential for green energy and technology sectors, with plans to auction a maximum number of mineral blocks by 2031.
The move aligns with the government’s broader push to reduce import dependency and strengthen supply chains for materials crucial to electric vehicles (EVs), renewable energy, and electronics manufacturing.
Speaking at the FICCI conference Critical Minerals Matrix, Union Minister of State for Mines and Coal, Satish Chandra Dubey announced that 24 critical mineral blocks have already been auctioned, with a target to expand this significantly under the National Critical Minerals Mission.
The mission, backed by a ₹34,300 crore investment over seven years, aims to position India as a global leader in critical mineral production and processing.
How Critical Minerals Will Fuel India’s Green Energy Transition
Critical minerals, including lithium, cobalt, nickel, graphite, and rare earth elements, are essential for India’s transition to clean energy and advanced manufacturing.
- Electric Vehicles (EVs): EV batteries rely on lithium, cobalt, and nickel. As India pushes for EV adoption under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) policy, a secure supply of these minerals will be crucial to scaling domestic EV production.
- Renewable Energy: Offshore wind turbines and solar panels require rare earth elements, copper, and aluminum. Offshore wind infrastructure alone demands nine times more minerals than conventional power plants, highlighting the need for a robust domestic supply.
- Electronics & Technology: With India aiming to become a global electronics manufacturing hub, securing a steady supply of graphite and rare earth elements is essential for semiconductors, mobile phones, and high-tech devices.
Industry Experts Call for Faster Exploration and Policy Reforms
Industry leaders at the conference emphasized the urgency of ramping up domestic exploration and streamlining regulatory approvals. Dhiraj Nayyar, Group Chief Economist at Vedanta, stressed that EVs require six times more minerals than conventional vehicles, and without domestic production, India risks replacing oil import dependency with critical mineral dependency.
The government’s commitment to reducing red tape and increasing private sector involvement was highlighted by Pratyush Sinha, Vice President at LOHUM, who pointed to the tenfold increase in global lithium production expected over the next decade as an opportunity for India to establish itself in the market.
Policy Push and International Collaboration
A FICCI-Deloitte report launched at the event underscores India’s growing demand for critical minerals and outlines strategies to boost domestic production. The report highlights:
- Recovery of minerals from mine tailings and overburden to maximize resource utilization.
- Public-private partnerships (PPPs) to develop processing and refining capabilities.
- Strategic global alliances with leading nations like the US, Australia, Japan, and Canada to adopt best practices in mineral extraction and supply chain security.
With India’s push for self-reliance in critical minerals, the government’s proactive policy interventions and industry collaboration will be key to ensuring energy security and economic growth in the green transition era.
As global demand for critical minerals skyrockets, India’s bold auction strategy signals a new era of resource independence. By securing domestic supply chains, promoting sustainable extraction, and leveraging global expertise, India is set to become a major player in the global green energy economy.