The Indian government has officially launched the National Critical Mineral Mission (NCMM), with significant financial support aimed at bolstering domestic mineral capacities necessary for clean energy projects and high-tech industries. With a total expenditure of ₹34,300 crore (approximately $4 billion) planned over the next six years, this mission marks a strategic move to secure India's supply chain for minerals like lithium, cobalt, nickel, and rare earth elements, which are increasingly becoming indispensable amid the global shift toward renewable energy.
Approved by the union cabinet, the NCMM entails direct government investment of ₹16,300 crore, supplemented by an anticipated ₹18,000 crore investment from public sector undertakings (PSUs) and private entities. Minister of Information and Broadcasting, Ashwini Vaishnaw, emphasized the mission's integral role within the broader framework of the Atmanirbhar Bharat initiative, which is aimed at making India self-reliant.
Critical minerals are not only foundational for the burgeoning electric vehicle (EV) industry but are also key components for wind turbines, solar panels, and other renewable energy technologies. The mission seeks to address the pressing challenges associated with the supply chain of these important resources by enhancing domestic exploration and securing international mining ventures.
“This mission will encompass all stages of the mineral value chain, including exploration, mining, processing, and recycling of end-of-life products,” Vaishnaw noted during the cabinet announcement. The government aims to expedite mining projects through the introduction of fast-track regulatory approval processes, which will be complemented by financial incentives to promote the recovery of minerals from waste materials.
Among its ambitious goals, the NCMM plans to acquire at least 50 overseas mining assets by 2030, paving the way for enhanced trade with resource-rich nations. Initiatives such as establishing mineral processing parks and centers dedicated to research and excellence in mineral technologies will support this effort.
Utilizing the potential of advanced mining techniques and partnerships, the government will actively seek to reduce its current dependency on mineral imports, particularly from countries like China. During the announcement, it was made clear how China’s dominance over the mineral supply chain presents risks for nations like India.
To navigate these challenges, the NCMM emphasizes collaboration across various sectors, targeting enhancements not just within the mining industry but also among public and private stakeholders. By stimulating local innovations and supporting start-ups engaged in mineral technology development, India is positioning itself as a future leader in the sustainable energy sector.
Currently, India is heavily reliant on imports to meet its growing mineral demand, relying particularly on nations like Australia and South Africa for resources. The NCMM outlines parliamentary approval to auction 100 blocks of strategic minerals by FY 2030-31, which will play a key role in bolstering domestic production capacities.
Newly amended legislation, such as the Mines and Minerals (Development and Regulation) Act, is expected to streamline processes and encourage private investments. The government’s focus is also directed toward enhancing mining regulations to favor easier acquisition and operationalization of mineral projects.
“The mining and mineral supply chain is central to India achieving its Net Zero ambitions by 2070, supporting energy transition mandates as well as economic growth,” said Megha Arora, partner at IndusLaw, highlighting the mission's multidisciplinary significance.
This development marks India’s proactive stance in securing its position within the global energy transition narrative, as the demand for clean energy resources continues to surge across the world. Given the complex interdependencies of global supply chains, the NCMM is seen as both timely and strategic.
With the anticipated impact of the mission, Indian companies and research institutions aim to leverage partnerships and technological innovation to solidify the nation's standing as competitive within the global mining sector. This initiative not only supports the green transition but also fosters the necessary infrastructure and expertise required to address future energy needs and challenges.
Through strategic investments and coordinated efforts across the government and industry sectors, the NCMM has the potential to fundamentally reshape India's approach to mineral resource management, emphasizing sustainability, self-reliance, and technological advancement.
The cabinet’s green light for the National Critical Mineral Mission showcases the government's commitment to overcoming existing challenges and transforming India’s mineral sector to leverage abundant domestic resources effectively.