Critical Minerals – India’s New “Mineral Resolve” and National Strategic Transformation

Introduction

Globally, with the rapid growth of energy transition, electric vehicles (EVs), renewable energy, and defence technologies, Critical Minerals have emerged as a strategic resource of the 21st century.

Until about three years ago, minerals such as lithium in India were classified as Atomic Minerals, restricting private sector participation. However, the recent Union Budget announcements and the launch of the National Critical Mineral Mission (NCMM), 2025 reflect a fundamental shift in India’s mineral policy.

1️⃣ Critical Minerals – Why Are They Important?

Critical minerals are essential for:
• Battery manufacturing
• Solar panels
• Wind energy equipment
• Electric vehicles
• Defence weapon systems
• Semiconductor industry

Important minerals include: Lithium, Cobalt, Niobium, Tantalum, Rare Earth Elements, etc.

👉 TNPSC Geography (Unit II)
• Mineral resources
• Natural resource management

👉 TNPSC Economy (Unit V)
• Industrial development
• Manufacturing-led growth
• Reduction of import dependence

2️⃣ Policy Advancements

(a) Identification of 30 Critical Minerals
India has officially identified 30 critical minerals.

(b) Royalty Rationalisation & Exploration Liberalisation
• Incentives for junior miners
• Increased private sector participation

(c) National Critical Mineral Mission (NCMM), 2025
• Allocation: ₹16,300 crore
• 1,200 exploration projects planned till 2031
• Tax incentives for exploration of 9 minerals

👉 This can be considered as Industrial Policy 2.0.

3️⃣ Execution Challenges

🔴 Long Exploration Timelines
From discovery to mining operations can take decades.

🔴 China’s Dominance
• Around 90% global processing capacity
• Rare earth magnet supply chain weaponisation concerns (2025)

🔴 Domestic Processing Gap
India can produce 99.9% pure copper, graphite, titanium, but:
• Scale is insufficient for clean-tech and defence demand.

👉 This is known as the Midstream Bottleneck.

4️⃣ Three Key Priorities

(1) Demand Creation – Building Domestic Demand

Increasing domestic production of EVs, batteries, solar, and wind equipment will strengthen:
→ Processing
→ Mining
→ Exploration ecosystem

This creates an industrial multiplier effect.

👉 TNPSC Unit V – Employment generation
👉 Make in India + Atmanirbhar Bharat

(2) AI-First Exploration Approach

• Integration of AI and geospatial data
• Mission Anveshan model (hydrocarbon discovery approach)
• Linkage with National Geoscience Data Repository

Related initiatives:
• Digital India
• National Geospatial Policy 2022
• IndiaAI Mission

👉 TNPSC Unit I – Science & Technology
AI applications in natural resource discovery.

(3) Geopolitical Partnerships

India is strengthening partnerships with:
• Australia
• Japan
• United Kingdom
• European Union
• United States

Through FTAs and supply chain cooperation frameworks.

👉 UPSC GS-II – International Relations
👉 GS-III – Resource Security

5️⃣ Political–Economic Dimensions

Key initiatives include:
• Development of rare earth corridors in coastal states
• Monazite import duty reduction
• ₹27,280 crore rare earth permanent magnet scheme

These are important for achieving Strategic Autonomy.

Relevant Constitutional Provisions:
• Article 39(b) – Resources should be used for the common good
• Article 246 & Seventh Schedule
• Union List Entry 54 – Mines & Minerals

Conclusion / Way Forward

Critical minerals policy is not merely about mining; it forms the foundation for:
• Energy security
• Industrial self-reliance
• Defence sector strength
• Geopolitical positioning

India must move from policy intent to execution excellence. Strong Centre–State coordination, technology investments, and global partnerships will be crucial.

The period 2026–2030 will be decisive in determining India’s leadership in the global mineral ecosystem.