The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch of the National Critical Mineral Mission, aimed at securing India’s self-reliance in critical minerals vital for renewable energy and other key industries. With an estimated expenditure of ₹16,300 crore, the initiative is expected to attract an additional ₹18,000 crore in investments from state-owned companies and private players. The mission was first announced in the 2024-25 Union Budget and officially cleared on Wednesday.
Key Minerals and Strategic Importance
Critical minerals play a crucial role in sectors such as solar panels, wind turbines, electric vehicle (EV) batteries, electronics, telecommunications, defence, and transportation. Union Minister for Electronics & IT Ashwini Vaishnaw emphasized that these minerals are vital for India’s energy transition and the development of a low-carbon economy. Among the 24 minerals covered under the mission are lithium, cobalt, graphite, nickel, and cadmium, which are essential for clean energy and technological innovations.
The mission seeks to cover the entire value chain, including exploration, mining, processing, and recycling of critical minerals. To accelerate progress, the government aims to streamline regulatory approvals and provide financial incentives for both exploration and mineral recovery from end-of-life products.
Expanded Domestic Exploration Efforts
The Geological Survey of India (GSI) has intensified exploration efforts for critical minerals, completing 368 projects over the past three years. Currently, 195 projects are underway, and 227 new projects are planned for FY 2025-26.
In addition to domestic initiatives, KABIL, a joint venture under the Ministry of Mines, has secured 15,703 hectares in Argentina’s Catamarca province to mine lithium, a key component for EV batteries and energy storage solutions. These steps aim to secure long-term access to critical resources for India’s clean energy ambitions.
Boosting Investment and Industrial Capabilities
The mission is designed to attract both public and private investment to develop mineral processing parks and stockpiles within India. The government has already removed customs duties on most critical minerals to encourage local industries to establish processing infrastructure. These efforts are expected to boost manufacturing in sectors such as renewable energy systems, battery technology, and electric mobility.
Ashwini Vaishnaw stated that ensuring critical mineral availability will support India’s growing renewable energy industries. Investments in processing capabilities will reduce the country’s dependence on global supply chains and enhance India’s clean energy competitiveness.
Policy Reforms and Regulatory Support
The Mines and Minerals (Development and Regulation) Act, 1957 was amended in 2023 to streamline mineral block auctions and accelerate exploration efforts. Additionally, the Union Environment Ministry has simplified approval processes for mineral surveys and exploratory drilling in forest areas, enabling faster project clearances.
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Industry Perspectives and Future Impact
Rishabh Jain, Senior Programme Lead at the Council on Energy, Environment and Water (CEEW), expressed support for the initiative. He emphasized that it will strengthen India’s clean energy component manufacturing ecosystem.
Jain pointed out that securing high-grade critical minerals is crucial for the success of Production Linked Incentive (PLI) schemes. He added that the mission can reduce import dependency and develop India’s expertise in mineral processing, recycling, and foreign acquisitions.
These efforts align with India’s goal to become a global leader in sustainable energy innovation.
A Step Toward Global Clean Energy Leadership
India’s push to secure critical mineral resources marks a crucial step toward becoming a self-reliant clean energy leader. Through enhanced exploration, new processing facilities, and international partnerships, the National Critical Mineral Mission is expected to drive growth in key industries.
