What Happened
- India is actively negotiating agreements with Brazil, Canada, France, and the Netherlands for joint exploration, extraction, processing, and recycling of critical minerals, with a focus on lithium and rare earth elements.
- The Ministry of Mines is spearheading negotiations mirroring a critical minerals agreement signed with Germany in January 2026, covering exploration, processing, recycling, and acquisition of mineral assets.
- India has already signed critical minerals agreements with Argentina, Australia, and Japan, and is in discussions with Peru and Chile.
- Canada's Prime Minister is expected to visit India in early March to finalize deals covering uranium, energy, minerals, and artificial intelligence.
- The strategy aims to reduce India's heavy dependence on China, which dominates global critical mineral supply chains and possesses advanced mining and processing technology.
Static Topic Bridges
National Critical Mineral Mission (NCMM)
The National Critical Mineral Mission was announced in the Union Budget 2024-25 (July 23, 2024) and formally approved by the Union Cabinet on January 29, 2025, with an outlay of Rs. 34,300 crore over seven years (FY2024-25 to FY2030-31). The mission encompasses all stages of the critical mineral value chain — exploration, mining, beneficiation, processing, and recovery from end-of-life products.
- Budget: Rs. 16,300 crore government funding + Rs. 18,000 crore expected from PSU investments = Rs. 34,300 crore total.
- The Geological Survey of India (GSI) has been tasked with conducting 1,200 exploration projects over the mission period.
- More than 100 critical mineral blocks are set to be auctioned, with exploration expanding to offshore regions rich in polymetallic nodules containing cobalt, rare earth elements, nickel, and manganese.
- Union Budget 2026-27 announced dedicated Rare Earth Corridors across Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
- Rs. 7,280 crore Rare Earth Permanent Magnet (REPM) Manufacturing Scheme approved in November 2025.
- India has domestic reserves of 8.52 million tonnes of rare earth elements, but processing capacity remains limited.
Connection to this news: The bilateral agreements with Brazil, Canada, France, and the Netherlands are part of the NCMM's mandate to acquire critical mineral assets abroad, complementing domestic exploration through international partnerships.
KABIL — Khanij Bidesh India Limited
KABIL is a joint venture company under the Ministry of Mines, formed in August 2019 by three central public sector enterprises — National Aluminium Company Limited (NALCO), Hindustan Copper Limited (HCL), and Mineral Exploration and Consultancy Limited (MECL). Its mandate is to identify, acquire, develop, and process strategic mineral assets abroad.
- KABIL has signed an Exploration and Development Agreement with CAMYEN (state-owned enterprise of Catamarca province, Argentina) for exploration and mining of five lithium blocks in Argentina, covering approximately 15,703 hectares.
- KABIL regularly engages with Australia's Critical Mineral Office for acquiring critical and strategic mineral assets.
- The JV structure (NALCO + HCL + MECL) combines expertise in aluminum smelting, copper mining, and geological exploration.
- KABIL is the primary vehicle for overseas critical mineral acquisition under the NCMM framework.
Connection to this news: As India negotiates new bilateral agreements with Brazil, Canada, France, and the Netherlands, KABIL is expected to play a central role in identifying and acquiring mineral assets, similar to its ongoing operations in Argentina.
Critical Minerals — Strategic Significance and Global Supply Chains
Critical minerals are mineral resources that are essential for economic and national security, particularly for clean energy technologies, defence applications, and advanced manufacturing, and whose supply chains are vulnerable to disruption. India's list of 30 critical minerals was notified by the Ministry of Mines in 2023, based on recommendations of a committee chaired by Dr. V.K. Saraswat (NITI Aayog).
- India's list of 30 critical minerals includes: lithium, cobalt, nickel, rare earth elements (REEs), graphite, vanadium, tungsten, antimony, beryllium, germanium, gallium, among others.
- China dominates global critical mineral processing: approximately 60% of lithium refining, 70% of cobalt refining, 90% of rare earth processing, and nearly 100% of heavy rare earth processing.
- Lithium is essential for lithium-ion batteries (EVs, grid storage); rare earth elements are critical for permanent magnets used in wind turbines, EV motors, and defence applications.
- India's MMDR (Mines and Minerals Development and Regulation) Act, 1957, was amended in 2023 to allow private sector participation in exploration and mining of critical minerals, and to create a dedicated auction framework for critical mineral blocks.
- Mining timelines are long: exploration alone typically takes 5-7 years, with no guarantee of commercially viable deposits.
Connection to this news: India's pursuit of overseas mineral agreements reflects the structural vulnerability of depending on China for critical mineral processing, with bilateral partnerships offering a supply chain diversification strategy essential for India's energy transition and defence modernization goals.
Rare Earth Elements — Properties and Applications
Rare earth elements (REEs) are a group of 17 metallic elements: 15 lanthanides (lanthanum to lutetium) plus scandium and yttrium. Despite their name, REEs are relatively abundant in the Earth's crust but rarely found in concentrated, commercially exploitable deposits.
- REEs are classified into Light Rare Earths (LREEs: lanthanum to europium) and Heavy Rare Earths (HREEs: gadolinium to lutetium plus yttrium). HREEs are rarer and more strategically valuable.
- Key applications: neodymium and praseodymium for NdFeB permanent magnets (wind turbines, EV motors), dysprosium for high-temperature magnet stability, europium and terbium for phosphors, cerium for catalytic converters.
- India's rare earth reserves: approximately 8.52 million tonnes (6th largest globally), concentrated in monazite sands along the coasts of Kerala, Odisha, Andhra Pradesh, and Tamil Nadu.
- Indian Rare Earths Limited (IREL), a government PSU under the Department of Atomic Energy, has been the sole entity permitted to mine monazite-bearing beach sands in India.
- Budget 2026-27 announced Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to boost domestic processing capacity.
Connection to this news: The focus on rare earth elements in bilateral negotiations with Brazil, Canada, and Europe underscores India's need to both secure overseas supply and develop domestic processing capacity through initiatives like the Rare Earth Corridors and REPM Manufacturing Scheme.
Key Facts & Data
- National Critical Mineral Mission outlay: Rs. 34,300 crore over 7 years (FY2024-25 to FY2030-31)
- India's rare earth reserves: 8.52 million tonnes (6th globally)
- KABIL's Argentina lithium blocks: approximately 15,703 hectares in Catamarca province
- China's dominance: approximately 60% lithium refining, 70% cobalt refining, 90% rare earth processing
- India's critical minerals list: 30 minerals notified in 2023
- MMDR Act amendment: 2023, allowing private sector in critical mineral exploration
- Rare Earth Permanent Magnet (REPM) Scheme: Rs. 7,280 crore (approved November 2025)
- Bilateral agreements signed: Argentina, Australia, Japan, Germany; in talks: Brazil, Canada, France, Netherlands, Peru, Chile
- Exploration timeline: typically 5-7 years for mineral exploration alone