Critical Minerals in India: Strategic Resources for a Sustainable Future

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By Metals Minerals Publication On Apr 20, 2025 0

Critical minerals are essential components in the manufacturing of high-tech devices, renewable energy technologies, electric vehicles (EVs), and defense systems. With the global shift towards green energy and digitalization, the demand for these minerals has surged. India, as a growing industrial and technological hub, is increasingly recognizing the strategic importance of securing a steady supply of critical minerals.

What Are Critical Minerals?

Critical minerals are elements that are vital for economic development and national security but have a high risk of supply disruption. These include rare earth elements (REEs), lithium, cobalt, graphite, nickel, titanium, and others. They are indispensable in the production of:

Batteries for EVs and energy storage
Solar panels and wind turbines
Semiconductors and electronics
Aerospace and defense equipment

India’s Demand for Critical Minerals

India’s ambitious targets for renewable energy (500 GW by 2030), electric mobility, and digital infrastructure are increasing the country’s dependency on these strategic materials. However, India currently imports a majority of its critical minerals, exposing it to supply chain vulnerabilities and geopolitical risks.

Key sectors driving demand:

Renewable Energy: Solar PV requires silicon, silver, tellurium; wind turbines need rare earth magnets.
Electric Vehicles: Lithium, cobalt, nickel are essential for lithium-ion batteries.
Defense and Aerospace: Titanium, beryllium, and REEs are vital for precision equipment and weaponry.

Current Status of Critical Minerals in India

India has some reserves of critical minerals but lacks significant domestic production capabilities for many of them. Notable points include:

Rare Earth Elements: India has REE reserves in monazite sands along the coasts, particularly in Kerala and Odisha, but processing capabilities are limited.
Lithium: Discovered recently in Jammu and Kashmir (estimated 5.9 million tonnes), a major milestone for India.
Graphite: Found in Jharkhand, Arunachal Pradesh, and Tamil Nadu.
Cobalt and Nickel: Present in minor quantities, primarily in Odisha and Nagaland.

Government Initiatives

To address supply concerns, the Indian government has taken several initiatives:

Critical Minerals List (2023): India released its first-ever list of 30 critical minerals, including lithium, cobalt, graphite, and REEs.
National Mineral Policy (2019): Emphasizes exploration and sustainable development of critical minerals.
KABIL (Khanij Bidesh India Ltd): A joint venture of three PSUs (NALCO, HCL, MECL) set up to acquire mineral assets abroad.
Incentives for Exploration: FDI and private sector participation are encouraged in mineral exploration.

Challenges Ahead

Despite the proactive steps, India faces several challenges:

Exploration and Technology Gaps: Lack of advanced exploration techniques and processing technology.
Environmental Concerns: Mining of critical minerals can have significant environmental impacts if not managed responsibly.
Global Competition: Competing with established players like China and the US in securing overseas assets.
Investment and Infrastructure: Need for heavy investment in mining and refining infrastructure.

The Way Forward

To become self-reliant and reduce import dependency, India needs a multi-pronged approach:

Strengthen domestic exploration and production.
Invest in R&D for efficient extraction and recycling.
Secure strategic partnerships with mineral-rich countries.
Build refining and processing capacities.
Promote circular economy through recycling and reuse of e-waste.

Conclusion

Critical minerals are the backbone of India’s aspirations in clean energy, digital innovation, and national security. A strategic focus on their exploration, acquisition, and sustainable use is crucial to ensure India’s energy transition and technological growth. With the right policies, public-private partnerships, and international collaboration, India can turn its critical mineral challenge into a significant economic opportunity.