India’s Critical Minerals Mission: PM Modi’s Plan To Secure India’s Future Explained
India's first auction of exploration licenses for critical minerals marks a strategic shift to secure its green energy future, aiming for self-reliance and reduced imports.
In the race towards a clean energy future, minerals like lithium, nickel, cobalt, and rare earth elements are more valuable than ever. These “critical minerals" are the backbone of electric vehicle (EV) batteries, semiconductors, wind turbines, and solar panels. For India, securing a steady and reliable supply of these minerals is not just a matter of economic growth – it’s a matter of strategic autonomy and energy security. India’s first-ever auction of exploration licences for critical minerals marks a historic shift in how the country sources these vital resources. As global geopolitics around critical minerals intensifies – with a Trump-led US eyeing Ukraine’s mineral-rich lands and China maintaining its dominance over supply chains – India under Prime Minister Narendra Modi is taking bold steps to reduce its import dependence and become a global player in the critical minerals space.
To be a leader in green energy, technology and semiconductors, India needs a lead in critical minerals supply. India has set ambitious goals for its green energy transition. By 2070, the country aims to reach net-zero greenhouse gas emissions. By 2030, it plans for 30% of its vehicles to be electric. Achieving these goals requires a massive increase in the availability of critical minerals. Currently, India remains highly dependent on imports. According to the Ministry of Mines, India imported 100% of its lithium, cobalt, and nickel in 2020, while 60% of its graphite came from overseas.
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China, the world’s top processor of these minerals, has been India’s largest supplier. This heavy reliance on foreign supply chains makes India vulnerable to geopolitical disruptions and price fluctuations. To counter this dependency, the Indian government has launched an aggressive plan to secure its future in the critical minerals race. This plan includes boosting domestic exploration and mining, acquiring mineral assets abroad, and ramping up recycling initiatives. In January 2025, India approved the National Critical Mineral Mission (NCMM), a ₹16,300-crore initiative with a total budget of ₹34,300 crore over seven years. The mission aims to establish self-reliance in critical minerals and accelerate India’s green energy transition. The mission will cover all stages of the value chain, from exploration to processing, and even recovery from end-of-life products.
Some of the key components include:
- Exploration and Mining: The Geological Survey of India (GSI) has already undertaken 368 critical mineral exploration projects in the past three years, with plans to take up 227 more in 2025-26.
- Fast-Track Approvals: A streamlined regulatory process will ensure that mining projects move forward without unnecessary delays.
- Financial Incentives: The government is offering incentives to encourage private and public sector companies to invest in exploration and extraction.
- Stockpiling and Recycling: A strategic stockpile of critical minerals will be created to ensure supply security. Additionally, India plans to recover 90% of all battery materials from EVs by 2027.
The government has also amended the Mines and Minerals (Development and Regulation) Act, 1957, to facilitate critical mineral auctions. In the first tranche of exploration licence auctions in March 2025, India put 13 blocks across 10 states up for auction, covering minerals such as gold, copper, diamonds, zinc, rare earth elements, vanadium, and zirconium.
A surge in critical mineral exploration will arm potential investors with crucial data on reserves, driving greater interest and participation in auctions. So far, only 24 critical mineral blocks have been auctioned, with many bids failing due to low investor engagement. The government is now offering thousands of square kilometres for exploration to private players. If they discover a deep-seated or critical mineral, their find could secure an income for the next 50 years.
India recognises that domestic exploration alone won’t be enough. As demand for critical minerals skyrockets worldwide, securing long-term supply agreements with resource-rich nations is crucial. Recently, India has expanded its resource diplomacy by acquiring mineral assets abroad:
- Africa Focus: India has secured 9,000 square kilometres of greenfield land in Zambia for copper and cobalt exploration. Additionally, it is exploring critical mineral projects in Congo, Tanzania, and Mozambique.
- Australia and Latin America: India has strengthened partnerships with mineral-rich nations like Australia, Argentina, and Chile, which hold significant lithium reserves.
- Trade and Investment Partnerships: The government is encouraging Indian public and private sector companies to invest in mining projects overseas and develop joint ventures with foreign entities.
While India’s efforts to boost its critical mineral sector are commendable, several challenges remain:
- Long Lead Times: The gap between mineral discovery and production can be long – sometimes spanning over a decade.
- Infrastructure Bottlenecks: Setting up refining and processing facilities in India will take time, and currently, most processing is controlled by China.
- Investment Risks: Overseas mineral acquisitions come with geopolitical and regulatory risks.
- Recycling Scalability: While India has ambitious recycling targets, the infrastructure to achieve them is still in its infancy.
To tackle these challenges, India needs to accelerate policy reforms, incentivise private sector participation, and invest in advanced mining and processing technologies. Public-Private Partnerships (PPPs) and international collaborations will play a key role in ensuring the success of India’s critical minerals mission. By expanding domestic exploration, acquiring assets abroad, and promoting recycling, India is positioning itself as a formidable player in the global clean energy revolution. As the world transitions to a net-zero future, critical minerals will be the fuel of the new economy. With the right policies, investments, and international partnerships, India is set to emerge as a key player in this rapidly evolving landscape.
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