The Indian government, on January 29, 2025, approved the National Critical Minerals Mission (NCMM), aiming to significantly bolster the country’s exploration and extraction of minerals deemed pivotal for economic growth and national security. This initiative, which will be implemented by the Ministry of Mines over the next seven years until 2031, is set against the backdrop of India’s increasing reliance on foreign imports of these important materials. The NCMM will cost around Rs 16,300 crore, with additional investments expected from both public sector undertakings and private enterprises.
The mission encompasses the entire value chain for mining, including exploration, beneficiation, processing, and recovery of minerals. Given the recent acknowledgment of 30 minerals as 'critical', including lithium, cobalt, nickel, and graphite, the initiative also aims to create stockpiles of these resources within India. This move is not merely precautionary; it is strategic. To secure India’s economic future, concerted efforts will be made to reduce dependency on foreign suppliers and fortify domestic supply chains.
Among the mission's goals is the establishment of a fast-track regulatory approval process for mining projects. This is particularly important because historically, lengthy approvals and uncertainties surrounding reserve statistics have deterred domestic and foreign investments. With targeted subsidies, the government plans to empower public sector companies and encourage private investments to pursue acquisitions of mineral assets globally.
The Indian government is also fostering partnerships with resource-rich countries and intends to integrate chapters on these minerals within existing bilateral trade agreements. This is part of a broader strategy to alleviate concerns over potential supply chain vulnerabilities, especially against the backdrop of geopolitical tensions and global market instabilities.
Prime Minister Modi expressed, "The mission signifies India’s commitment to ensuring availability of minerals from both domestic and international sources," highlighting the initiative’s scope. The focus on sourcing minerals both locally and globally aims to create stability and security within India’s resource supply.
The NCMM will provide significant financial support to the National Mineral Exploration Trust (NMET), with Rs 5,600 crore earmarked to cover risks associated with foreign sourcing and exploration. A part of the mission’s allocation will also include financing for setting up dedicated mineral processing parks, which will help streamline the services required to mine and process these materials efficiently. The government aims to auction 1,200 exploration projects and over 100 blocks of mineral resources by the fiscal year 2031.
According to the Institute for Energy Economics and Financial Analysis (IEEFA), India's demand for these minerals is poised to double by 2030. The report highlights concerning trends, indicating India is almost entirely import-dependent for certain resource types, particularly lithium, cobalt, and nickel. The IEEFA warns, "India's dependency on imports for minerals like lithium and cobalt is troubling," stressing the need for urgent action to develop domestic production capabilities.
Improving self-reliance is also aligned with India's larger clean energy goals, including the ambitious target of achieving 500 gigawatts (GW) of non-fossil fuel-based electricity by 2030. Currently, India has achieved 201 GW, with solar power contributing significantly to this figure.
The list of 30 minerals identified by the government includes those imperative for high-tech industries, such as rare earth elements and lithium, which are utilized across sectors such as electronics, telecommunications, agriculture, and even defence. By advancing this mission, India hopes to mitigate vulnerabilities associated with the global supply chain, recognizing the geopolitical risks tied to sourcing from previously reliant regions.
The need for urgency is underscored by recent findings indicating substantial trade dependencies, particularly on China for minerals such as synthetic and natural graphite. Experts suggest diversifying sourcing strategies and exploring cooperative partnerships with nations like Brazil, Madagascar, and Mozambique, known for their rich graphite reserves, can not only ease supply concerns but also stabilize market dynamics.
Overall, the National Critical Minerals Mission serves as both a reactive strategy to current supply chain vulnerabilities and as proactive planning by India to secure its future resource needs. By fostering exploration domestically and establishing trade routes with mineral-rich countries, India aims to establish itself as not only self-sufficient but also as a significant player on the global mineral stage, ensuring its economic and technological aspirations are met.