Context:
Critical minerals have moved to the centre of India’s industrial, energy, and geopolitical strategy, with the government pushing mineral security through the National Critical Mineral Mission (NCMM), exploration reforms, domestic processing, and international partnerships.
Key Highlights:
- Policy Priority
- The Union Budget has placed critical minerals at the core of India’s long-term strategic planning.
- India has identified 30 critical minerals essential for economic growth, clean energy, and national security.
- Institutional Push
- The National Critical Mineral Mission (NCMM) was launched in January 2025 with a budgetary outlay of ₹16,300 crore.
- Recent policy focus is shifting from conceptual planning to actual implementation and execution.
- Reforms in Exploration and Processing
- India has eased mineral exploration norms for junior miners and rationalized royalty rates.
- Budget 2026 also emphasizes removal of import duties on capital goods used in mineral processing.
- Strategic Importance
- Critical minerals are necessary for batteries, EVs, solar modules, wind turbines, electronics, semiconductors, and defence systems.
- India seeks to reduce dependence on vulnerable global supply chains and improve technological sovereignty.
- Global Partnerships
- India is building partnerships with Australia, the UK, the US, Europe, and Japan for technology transfer and supply-chain cooperation.
Relevant Prelims Points:
- Critical Minerals
- Minerals essential for strategic sectors and economic development, with supply vulnerable to disruption.
- Examples globally include lithium, cobalt, nickel, graphite, and rare earth elements.
- National Critical Mineral Mission (NCMM)
- Government initiative aimed at securing supply through exploration, mining, processing, and strategic partnerships.
- Rare Earth Elements (REEs)
- Group of 17 elements widely used in electronics, magnets, clean energy, and defence applications.
- Monazite Sands
- Mineral sands containing rare earth elements and thorium, found in parts of India’s coastal regions.
- Technological Sovereignty
- A nation’s ability to develop and control strategic technologies and supply chains without excessive external dependence.
Relevant Mains Points:
- Strategic Significance
- Critical minerals are the foundation of the energy transition economy and advanced manufacturing.
- For India, mineral security is linked not only to economic growth but also to national security and strategic autonomy.
- India’s Current Position
- India has some processing capability in areas such as copper, graphite, and rare earth oxides, but scale and technology remain inadequate.
- The key gap lies in moving from raw mineral access to high-purity processing and industrial integration.
- Need for Domestic Value Chains
- Mineral security is meaningful only if supported by demand from domestic manufacturing in EVs, batteries, solar, wind, and defence production.
- Thus, critical mineral policy must be integrated with industrial policy and Make in India goals.
- Role of Technology and AI
- An AI-first approach to exploration can improve geological targeting and reduce risk.
- Synergies with the IndiaAI Mission, National Geospatial Policy, and Mission Anveshan can improve site discovery and resource mapping.
- Challenges
- Long gestation periods in mining and environmental clearances.
- Technology deficit in extraction and refining.
- Global concentration of mineral supply chains in a few countries.
- Need for stronger Centre–State coordination.
- Way Forward
- Expand domestic exploration using AI, geospatial tools, and private participation.
- Build rare earth and strategic mineral processing corridors.
- Support downstream industries to create sustained domestic demand.
- Deepen technology partnerships and secure overseas mineral assets.
- Ensure environmental sustainability and local community participation in mining.
UPSC Relevance:
- GS Paper III: Economy, resource security, clean energy transition.
- GS Paper II: International partnerships and strategic autonomy.
- GS Paper III: Science and technology in exploration and processing.