Policy Update
Chetan Gupta
Introduction
Mineral resources are fundamental to the development of human civilization. Critical minerals have gained importance globally due to their essential role in a country’s energy transition, economic development, and national security. Critical minerals are essential for energy, food, telecommunication, electronics, defence, and other sectors.
(Source: ResearchGate)
Critical mineral resources are geographically concentrated in a relatively small number of countries, with at least 55% of each identified critical mineral found in only 15 countries. For instance, the Democratic Republic of Congo holds almost 50% of the world’s cobalt, whereas China holds significant portions of rare earth elements. Their lack of availability or concentration in a few geographical locations can lead to global supply chain vulnerabilities. As countries pursue decarbonization goals (net-zero targets), the demand for minerals like lithium, cobalt, rare earth elements, etc., has surged exponentially.
India Import Dependency of Key Minerals vs. Geopolitical Risk
Background
The Government of India launched the National Critical Mineral Mission (NCMM) in January 2025 with an outlay of 34,300 crore over seven years from 2024-25 to 2030-31. Initially, the Union Cabinet approved 16,300 crore for the NCMM on 29 January 2025, and is expected to receive an investment of 18,000 crore by PSUs. It aims to promote exploration of essential minerals, reduce import dependence and ensure self-reliance in India. The Mission envisions developing a robust critical minerals supply chain to boost economic activities, combat climate change, guarantee food security and ensure sustainable development for all.
Vision for National Critical Mineral Mission
(Source: Finance Minister Budget Speech 2024-25, NCMM Document, Ministry of Mines)
Critical minerals are essential to India’s various clean energy technologies and industries. For instance, critical minerals like silicon, tellurium, indium, and gallium are important for solar panels. Rare earth elements dysprosium and neodymium are key for wind turbines. Lithium, nickel, and cobalt are vital for lithium-ion batteries in electric vehicles (EVs) and energy storage systems. India launched the NCMM to secure these resources for long-term availability and processing.
Objectives
NCMM aims to achieve the following two objectives:
- To secure India’s critical mineral supply chain by ensuring mineral availability from domestic and foreign sources.
- Strengthening the value chains by enhancing technological, regulatory, and financial ecosystems to foster innovation, skill development, and global competitiveness in mineral exploration, mining, beneficiation, processing, and recycling.
Seven Components of the National Critical Mineral Mission (NCMM)
Seven Major Components of the NCMM (Source: PIB, Ministry of Mines 2025)
Functioning
Following the finance minister’s announcement in budget speech 2024-25, the Government launched the NCMM in January 2025 to establish a robust framework for self-reliance in the critical mineral sector. The Ministry of Mines is the administrative Ministry of the NCMM. The Mission’s activities are coordinated by an Empowered Committee chaired by the Cabinet Secretary, which includes members from relevant stakeholder ministries. The proposed budget structure is mentioned in Table 1 below:
(Source: NCMM Document, Ministry of Mines)
A committee formed by the Ministry of Mines in November 2022 identified 30 critical minerals, with 24 included in Part D of Schedule I of Mines and Minerals Development and Regulation Act, 1957 (MMDR Act, 1957). The inclusion of 24 critical minerals means that the Central Government now has the exclusive authority to auction mining leases and composite licenses. India produces graphite, silicon, mica, and rare earth elements (REEs) in large quantities. India is also a major producer of iron ore, manganese ore, bauxite, and coal.
Critical Minerals specified in Part D of First Schedule of the MMDR Act [24 minerals]
(Source: NCMM Document, Ministry of Mines)
The NCMM aims to secure a sustainable supply of critical minerals vital for India by increasing domestic production. It will undertake 1200 exploration projects and over 100 critical mineral blocks to be auctioned. It also fast-tracks offshore mining, encourages private exploration through new licenses, sets up Mineral Processing Parks and significantly coordinates with States for exploration and infrastructure. The Mission aims to acquire critical mineral assets abroad by supporting mapping, exploration and funding central PSUs like KABIL and private firms to invest in foreign critical mineral projects, also by coordinating with MEA for regulatory facilitation.
The Mission seeks to develop guidelines and incentives for forming critical mineral recycling. The component provision plans to enter a Critical Mineral Partnership Agreement with resource-rich countries, including provisions for critical minerals in FTAs, harmonious tariffs, and lower duties. It envisions creating a National Critical Mineral Stockpile to mitigate supply disruptions. The NCMM focuses on scientific research and technology by promoting innovation (patent filing, startups, and R&D), simplifying the regulatory framework.
(Source: Ministry of Mines)
It also aims to work upon human resource development by setting up skill development centres in partnership with the concerned Ministries. The Mission strives to mobilise national and international funding and integrate NCMM with existing schemes. In order to boost International collaboration, India has actively participated in platforms like the Mineral Security Partnership, Indo-Pacific Economic Framework, Quad, and bilateral MoUs (countries such as Australia, Argentina, and Chile) to strengthen critical mineral supply chains and technology cooperation.
Performance and Impact
The Ministry of Mines has set up Centres of Excellence (CoE) under the NCMM in April 2025. It addresses the key pillar of the Mission, which is research and technology development in critical minerals. In June 2025, the Government also established NCMM Outreach Forum – a critical minerals forum and outreach program- as a platform for collaboration and innovation within the sector.
Import and Export of MCDR Minerals (Source: Ministry of Mines)
Under this Mission, the Geological Survey of India (GSI) has been tasked with conducting 1,200 exploration projects from 2024-25 to 2030-31. Further, GSI has undertaken 368 exploration projects for critical minerals over the past three years, with 195 projects currently underway in 2024-25, including 35 in Rajasthan, focused on identifying and assessing critical mineral deposits. Earlier in 2021-22 and 2022-23, GSI conducted reconnaissance surveys for rare earth elements (REEs) including neodymium in Sirohi and Bhilwara districts of Rajasthan. The Department of Atomic Energy discovered around 1,11,845 tonnes of in-situ Rare Earth Elements Oxide (REO) in Balotra, Rajasthan.
(Source: PIB, Ministry of Mines 2025)
KABIL (Khanij Bidesh India Ltd) signed an agreement with CAMYEN SE, a state-owned enterprise in Argentina, on 15 January 2024 for lithium exploration covering 15,703 hectares. KABIL also signed an MoU with the Critical Mineral Office (CMO), Department of Industry, Science and Resources (DISER), Government of Australia, in March 2022.
Emerging Issues
- The heavy import reliance (especially from China) exposes supply risks and price volatility.
- The lack of advanced mining and processing technologies limits domestic extraction capabilities.
- Insufficient recycling infrastructure hampers recovery of critical minerals from e-waste.
- The price volatility and limited market data create investment uncertainties.
- Environmental and social impacts of mining require sustainable practices.
- The long development timelines delay scaling of alternative mineral sources.
(Source: Ministry of Mines)
Way Forward
India has initiated steps to catch up and address the most pressing issue related to critical minerals supply chains and energy transition goals. Accelerated implementation through enhanced coordination between the centre and state, industry stakeholders and research institutions, is key to ensuring effective outcomes from the NCMM. The consolidation of international partnerships to diversify supply sources will ensure mitigating geopolitical risk and global disruptions.
Together, these efforts will secure critical minerals vital for clean energy transition and support India’s targets of reducing emissions intensity by 45% by 2030, achieving 50% non-fossil electric capacity, and reaching net-zero emissions by 2070. It is also aligned with the visions of Viksit Bharat 2047 and Atmanirbhar Bharat.
References
- Economic Times. (2025, July 9). India rare earth opportunities vs. critical‑minerals china chokehold. https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/india-rare-earth-opportunities-critical-minerals-china-chokehold/articleshow/122335023.cms
- International Energy Agency. (2025, April 29). National Critical Mineral Mission. https://www.iea.org/policies/25735-national-critical-mineral-mission
- Ministry of Mines. Home. https://mines.gov.in/webportal/home
- Ministry of Mines. National Critical Mineral Mission Document. https://mines.gov.in/admin/storage/ckeditor/24_pages__desktop_1752835254.pdf
- Ministry of Mines. Notification: National Critical Mineral Mission. Retrieved from http://mines.gov.in/admin/storage/ckeditor/NCMM_Notification_(1)_1751518157.pdf
- Press Information Bureau. (2025, January 29). Cabinet approves ’National Critical Mineral Mission’ to power India’s clean-energy future. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2097309
- Press Information Bureau. (2025, March 18). Import of Critical Minerals for EVs. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2112232
- Press Information Bureau. (2025, March 26). Extraction of critical minerals from tailings approved under NCMM. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2115222
- Press Information Bureau. (2025, March 24). Strategic Supply Chain Management of Critical Minerals. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2114467
- Press Information Bureau. (2025, April 2). Import of Rare Earth Metals. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2117701
- Press Information Bureau. (2025, April 9). National Critical Mineral Mission Powering India’s Clean Energy Future. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2120525
- Press Information Bureau. (2025, April 16). Ministry of Mines Issues Guidelines for Setting up of Centre of Excellence under National Critical Mineral Mission. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2122219
- Press Information Bureau. (2025, June 6). Minister Launches NCMM Outreach Forum to Propel India’s Critical Minerals Ecosystem. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2134654
- Researchgate. Production Concentration of Critical Mineral Materials. Map https://www.researchgate.net/figure/Map-of-the-location-of-critical-mineral-materials_fig1_361291184
- The Hindu. (2025, January 29). Government approves National Critical Minerals Mission with outlay of ₹34,300 crore in seven years. https://www.thehindu.com/news/national/government-approves-national-critical-minerals-mission-with-outlay-of-34300-crore-in-7-years/article69154754.ece
- The Indian Express. (2025, February 6). National Critical Minerals Mission: UPSC essentials. https://indianexpress.com/article/upsc-current-affairs/upsc-essentials/national-critical-minerals-mission-upsc-knowledge-nugget-prelims-9807131/
About the contributor: Chetan Gupta is a Research Intern at Impact and Policy Research Institute (IMPRI). He is currently pursuing his Master’s degree in International Relations from South Asian University (established by SAARC nations), Delhi.
Acknowledgement: The author sincerely thanks Ms. Aasthaba Jadeja and the IMPRI team for their valuable support.
Disclaimer: All views expressed in the article belong solely to the author and not
necessarily to the organisation.
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