The Critical Minerals Emerge as Strategic Resources Driving Energy Security, Industrial Competitiveness and National Economic Sovereignty

Recent Developments:

• Critical Minerals have emerged as a major strategic concern amid intensifying global competition over mineral supply chains, with countries prioritising resource security, processing capacity, and resilient value chains.
• The International Energy Agency (IEA) in its Global Critical Minerals Outlook 2026 highlighted rising supply concentration, declining investments, and export restrictions, increasing global vulnerabilities in mineral supply chains.
• China's tightening control over Rare Earth Elements (REEs) and export licensing measures has accelerated efforts by major economies to diversify mineral sourcing and reduce strategic dependence.
• Against this backdrop, India is accelerating implementation of the National Critical Mineral Mission (NCMM), strengthening overseas acquisitions, expanding domestic processing, and deepening strategic partnerships to secure critical mineral supplies.

Summary:

• Critical Minerals have become the foundation of the clean energy transition, advanced manufacturing, digital technologies, and national security, making them central to geopolitical competition.
• India is adopting a comprehensive Mine-to-Market Strategy through domestic exploration, international partnerships, processing infrastructure, recycling, and strategic stockpiling to achieve Net Zero and Viksit Bharat 2047 objectives.

What are Critical Minerals?

Meaning and Characteristics:

• Critical Minerals are non-fuel metallic or non-metallic minerals that are indispensable for modern technologies, industrial production, and strategic sectors.
• There is no universally accepted definition of Critical Minerals, as every country identifies them based on economic importance, supply risk, import dependence, and availability of substitutes.
• They are termed critical because any disruption in their supply can significantly affect a country's economic growth, industrial production, energy transition, technological leadership, and national security.

Critical Minerals Identified by India:

• The Ministry of Mines has identified 30 Critical Minerals for India through an Expert Committee.
• Major minerals include Lithium, Cobalt, Nickel, Copper, Graphite, Rare Earth Elements (REEs), Molybdenum, Niobium, Vanadium, Titanium, Tin, Tungsten, and Silicon.

Strategic Importance of Critical Minerals:

Foundation of Clean Energy Transition:

• Critical Minerals constitute the backbone of Electric Vehicles (EVs), Battery Energy Storage Systems (BESS), Solar Power, Wind Energy, Green Hydrogen, and modern electricity grids.
• The transition towards low-carbon economies under the Paris Agreement (2015) and national Net Zero commitments has substantially increased global demand for these minerals.

Role in Renewable Energy Technologies:

• Lithium, Nickel, Cobalt, and Graphite are essential for manufacturing Lithium-ion Batteries used in EVs and grid-scale energy storage.
• Silicon, Tellurium, Gallium, and Indium are widely used in Photovoltaic (Solar) Cells.
• Neodymium and Dysprosium are indispensable for Permanent Magnets used in high-efficiency Wind Turbines and electric motors.
• Copper remains the most important conductor for electricity transmission, renewable energy infrastructure, and charging networks.

Supporting India's Energy Transition:

• NITI Aayog estimates that India's cumulative requirement of Critical Energy Transition Minerals (CETMs) could reach nearly 169 million tonnes by 2070, around 51% higher than the Current Policy Scenario.
• Availability of these minerals will determine the pace of India's renewable energy expansion, electric mobility, and energy security.

Driving Emerging Technologies:

• Critical Minerals are indispensable for Semiconductors, Artificial Intelligence (AI), Quantum Computing, Advanced Electronics, Telecommunications, Space Technologies, and Robotics.
• They support manufacturing of high-performance chips, data centres, 5G infrastructure, and next-generation electronic devices.

National Security and Defence:

• Modern defence systems require specialised alloys and rare earth magnets for fighter aircraft, missiles, radars, satellites, precision-guided weapons, and electronic warfare systems.
• Secure mineral supplies are therefore essential for strategic autonomy, defence preparedness, and technological sovereignty.

Economic and Industrial Importance:

• Critical Minerals strengthen manufacturing competitiveness, industrial diversification, high-value exports, and global supply chain integration.
• Reliable mineral supplies reduce external vulnerabilities while supporting Make in India, Atmanirbhar Bharat, and advanced manufacturing ecosystems.

Contribution to Sustainable Development Goals (SDGs):

• Critical Minerals directly support:
• SDG 7 – Affordable and Clean Energy.
• SDG 9 – Industry, Innovation and Infrastructure.
• SDG 12 – Responsible Consumption and Production.
• SDG 13 – Climate Action.
• However, mineral extraction must follow environmentally sustainable, socially responsible, and resource-efficient mining practices.

Growing Geopolitical Importance:

• Export restrictions, resource nationalism, trade controls, and concentrated processing capacity have transformed Critical Minerals into strategic geopolitical assets often described as the "New Oil" of the clean energy era.
• The IEA Global Critical Minerals Outlook 2026 notes that mineral security is now central to energy security, economic security, and industrial resilience.

Major Critical Minerals and Their Availability in India:

Critical Mineral

Major Reserves / Occurrence in India

Lithium

Karnataka, Jamm& Kashmir

Cobalt & Nickel

Odisha, Jharkhand, generally associated with copper ores

Rare Earth Elements (REEs)

Andhra Pradesh, Karnataka, Odisha, Kerala, Gujarat, Rajasthan

Graphite

Arunachal Pradesh, Jharkhand, Tamil Nadu

Copper

Rajasthan, Madhya Pradesh, Jharkhand

How Geopolitics is Reshaping Critical Mineral Supply Chains:

Weaponisation of Mineral Supply Chains:

• Countries possessing dominant control over mining or refining are increasingly using Critical Minerals as instruments of geoeconomic influence.
• China's export licensing requirements for Rare Earth Elements highlighted the strategic vulnerability of countries dependent on a few suppliers.

Supply Chain Concentration:

• According to the IEA Global Critical Minerals Outlook 2026, refining of many critical minerals remains concentrated in a few countries, increasing risks associated with geopolitical tensions, trade restrictions, and supply disruptions.
• China continues to dominate global refining of Rare Earth Elements, Graphite, Lithium Chemicals, and Cobalt, creating significant supply vulnerabilities.

Rise of Friendshoring and Alliance Economy:

• Major economies are shifting towards Friendshoring, under which mineral supply chains are developed among trusted strategic partners rather than depending upon a single dominant supplier.
• Initiatives such as the Minerals Security Partnership (MSP), EU Critical Raw Materials Act, US-Australia Compact, and Quad Critical Minerals Initiative reflect this emerging strategy.

Traditional Geopolitical Conflicts Affecting Energy Transition:

• Critical mineral supply chains are increasingly exposed to maritime chokepoints, regional conflicts, and trade disruptions.
• The IEA noted that disruptions in sulphur supplies and export restrictions increased refining costs, highlighting growing vulnerabilities in global mineral processing.

Shift Towards Supply Chain Diversification:

• Countries are adopting China+1 Strategies by expanding domestic mining, investing in overseas mineral assets, promoting recycling, and building diversified supply chains with trusted partners.
• Mineral security is increasingly viewed as a prerequisite for energy transition, industrial competitiveness, and economic resilience.

Global Approaches to Critical Mineral Security:

Country / Bloc

Approach

China

Dominates mining, refining, processing, exports, and uses mineral supply chains as an instrument of geoeconomic influence.

United States

Promotes Friendshoring, strategic alliances, domestic processing, overseas investments, and diversified supply chains.

European Union

Focuses on strategic autonomy through domestic extraction, recycling, refining, and reducing dependence on single suppliers.

Australia

Utilises abundant reserves while expanding downstream processing and partnerships with trusted economies.

Japan

Secures overseas mining assets, long-term contracts, strategic stockpiles, and resource diplomacy.

India

Pursues an integrated Mine-to-Market Strategy through domestic exploration, overseas acquisitions, value addition, recycling, and resilient international partnerships.

India's Initiatives to Strengthen Critical Mineral Security:

National Critical Mineral Mission (NCMM):

• The National Critical Mineral Mission (NCMM) was launched in 2025 and is being implemented from FY 2024–25 to FY 2030–31 to develop the complete Mine-to-Market Value Chain for Critical Minerals.
• The Mission focuses on exploration, mining, beneficiation, processing, recycling, research & development (R&D), human resource development, strategic stockpiling, and global partnerships, thereby reducing India's long-term import dependence.

MMDR Act Amendment, 2023:

• The Mines and Minerals (Development and Regulation) Amendment Act, 2023 empowered the Central Government to auction 24 of the 30 identified Critical Minerals, accelerating private participation, exploration, and domestic production.
• The amendment aims to improve ease of doing business, attract investment, and strengthen India's mineral security.

International Cooperation:

• India signed the India–US Critical Minerals and Rare Earths Framework (2026) to strengthen secure, trusted, and diversified Critical Mineral supply chains.
• India is also expanding bilateral cooperation with Australia, Argentina, Chile, Namibia, Brazil, and several African countries for exploration, mining, processing, and technology transfer.

KABIL (Khanij Bidesh India Limited):

• KABIL is a joint venture of National Aluminium Company Limited (NALCO), Hindustan Copper Limited (HCL), and Mineral Exploration and Consultancy Limited (MECL).
• It secures overseas Critical Mineral assets through exploration, acquisition, joint ventures, and long-term supply agreements, thereby reducing India's dependence on imported raw materials.

Pax Silica Initiative (2026):

• India joined the US-led Pax Silica Initiative to strengthen trusted supply chains for Critical Minerals, Semiconductors, Artificial Intelligence (AI), and Advanced Manufacturing.
• The initiative promotes resilient value chains while reducing dependence on highly concentrated suppliers.

Quad Critical Minerals Initiative (2025):

• The Quad Critical Minerals Initiative brings together India, Australia, Japan, and the United States to build secure and diversified Critical Mineral supply chains.
• The initiative proposes mobilisation of nearly USD 20 billion for mining, processing, recycling, and technology development.

Rare Earth Corridors:

• The Union Budget 2026–27 proposed Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to strengthen domestic processing, value addition, and downstream manufacturing.
• These corridors aim to reduce dependence on imported Rare Earth Magnets and strengthen indigenous industrial capabilities.

Recycling and Circular Economy:

• India is promoting urban mining, battery recycling, electronic waste recovery, and resource efficiency to recover valuable Critical Minerals from end-of-life products.
• Recycling is expected to become a major secondary source of Critical Minerals while reducing environmental impacts.

Challenges to India's Critical Mineral Security:

High Import Dependence:

• India remains heavily dependent on imports for several Critical Minerals, making supply chains vulnerable to geopolitical tensions, trade restrictions, and price volatility.
• Lithium is almost entirely imported, Cobalt is largely sourced from the Democratic Republic of the Congo (DRC), Nickel mainly from Indonesia, while Rare Earth Magnets are predominantly imported from China.

Limited Domestic Processing Capacity:

• Despite possessing mineral resources, India has limited capacity for battery-grade lithium chemicals, high-purity graphite, rare earth separation, advanced smelting, and chemical refining.
• Nearly 70–90% of global value addition occurs at the processing stage, making domestic capability essential for strategic autonomy.

China's Midstream Dominance:

• China refines more than 90% of global Rare Earth Elements and Graphite, around 75% of Cobalt, and nearly 70% of Lithium Chemicals.
• This concentration enables China to exercise significant influence over global Critical Mineral supply chains through export restrictions and processing controls.

Inadequate Exploration:

• Mineral exploration in India remains largely reconnaissance-based and relatively shallow, whereas Critical Minerals generally occur in deep-seated geological formations.
• Advanced technologies such as airborne geophysical surveys, hyperspectral imaging, 3D geological modelling, and Artificial Intelligence (AI) require wider adoption.

Environmental and Social Concerns:

• Mining activities may result in deforestation, water pollution, land degradation, loss of biodiversity, and community displacement if not managed sustainably.
• Balancing mineral security with environmental conservation and social justice remains a major policy challenge.

Investment and Technology Constraints:

• Critical Mineral projects involve high exploration risks, long gestation periods, capital-intensive processing facilities, and technology-intensive refining, limiting private sector participation.

Way Forward:

Strengthen Domestic Exploration:

• Accelerate deep-seated mineral exploration through Artificial Intelligence (AI), airborne geophysical surveys, hyperspectral mapping, 3D geological modelling, and advanced mineral exploration technologies.
• Expand geological surveys under the National Critical Mineral Mission (NCMM) while improving accessibility of geological data.

Develop Processing and Refining Ecosystem:

• Establish domestic facilities for battery-grade lithium, nickel, cobalt, and rare earth refining through fiscal incentives, Production Linked Incentive (PLI) support, and Public-Private Partnerships (PPPs).
• Develop integrated Mine-to-Market Value Chains to maximise domestic value addition.

Diversify Overseas Mineral Sources:

• Secure long-term mineral supplies through KABIL, strategic investments, and joint ventures in resource-rich countries such as Australia, Argentina, Chile, Namibia, and African nations.
• Reduce dependence on any single supplier by expanding diversified sourcing strategies.

Promote Circular Economy:

• Scale up battery recycling, electronic waste management, urban mining, and resource recovery to reduce primary mineral demand and strengthen supply resilience.
• Encourage research on substitute materials and resource-efficient technologies.

Improve Ease of Mining:

• Streamline environmental and forest clearances, strengthen risk-sharing mechanisms, improve logistics, and create a stable regulatory environment to attract private investment.
• Strengthen collaboration among government, industry, research institutions, and international partners.

Strengthen Strategic Stockpiles and Partnerships:

• Develop national stockpiles of strategically important minerals to manage short-term supply disruptions.
• Expand cooperation through the Quad, India–US Framework, Minerals Security Partnership (MSP), and other trusted international platforms.

Conclusion:

• Critical Minerals have become central to the global transition towards clean energy, advanced manufacturing, and strategic technologies, making secure supply chains an important component of economic and national security.
• India's long-term mineral security will depend upon successfully integrating domestic exploration, processing capacity, technology development, international resource partnerships, recycling, and sustainable mining practices.
• Transitioning from a supplier of raw ores to a global hub for high-value mineral processing, advanced materials, and circular resource management will strengthen Atmanirbhar Bharat, support Net Zero commitments, and accelerate the journey towards Viksit Bharat 2047.

Value Addition for UPSC:

Important Facts:

• Ministry Responsible: Ministry of Mines.
• Critical Minerals identified by India: 30.
• National Critical Mineral Mission (NCMM): 2025.
• Implementation Period: FY 2024–25 to FY 2030–31.
• MMDR Amendment: 2023.
• KABIL Full Form: Khanij Bidesh India Limited.
• Quad Members: India, Australia, Japan, United States.
• IEA Outlook 2026: Highlights increasing supply concentration, processing dominance, and geopolitical vulnerabilities in Critical Mineral supply chains.

Prelims Focus:

• Lithium: Electric vehicle batteries, energy storage.
• Cobalt: Lithium-ion battery cathodes, aerospace alloys.
• Nickel: Battery manufacturing, stainless steel.
• Copper: Electrical transmission, renewable energy infrastructure.
• Graphite: Battery anodes, refractories.
• Rare Earth Elements (REEs): Permanent magnets, electronics, defence equipment, wind turbines.

Mains Enrichment:

• Critical Minerals are increasingly recognised as the "New Oil" because control over their extraction, processing, and supply chains is becoming as strategically important as control over fossil fuels was during the twentieth century.
• India's strategy must shift from "Mine-to-Export" towards "Mine-to-Market", integrating exploration, processing, manufacturing, innovation, and recycling to build resilient and globally competitive Critical Mineral value chains.

Sustainable mineral security should combine resource efficiency, environmentally responsible mining, community participation, technological innovation, and international cooperation to ensure long-term economic resilience and strategic autonomy