What Happened
- The Union Cabinet was expected to approve Joint Declarations of Intent (JDI) with Germany and Canada for cooperation in the critical minerals sector on February 24, 2026.
- The pact with Germany focuses on joint exploration, sustainable mining, supply chain resilience, and technology transfer.
- A similar pact with Canada covers cooperation in identifying and securing critical mineral assets essential for clean energy and advanced technology applications.
- These agreements are part of India's accelerating push to secure overseas mineral supply chains amid a global scramble for critical minerals essential for the clean energy transition.
- India is simultaneously pursuing engagement with Brazil, France, and the Netherlands for similar critical minerals cooperation frameworks.
Static Topic Bridges
Critical Minerals — What They Are and Why They Matter
Critical minerals are raw materials of high economic importance to a nation that face significant supply chain risks due to concentration of extraction and processing in a few countries (primarily China for many minerals). They are essential inputs for clean energy technologies (electric vehicles, solar panels, wind turbines), advanced electronics, defence systems, and semiconductors.
- India's official list of 30 critical minerals (released 2023 by Ministry of Mines): includes lithium, cobalt, nickel, graphite, cobalt, gallium, germanium, indium, rare earth elements (REE), tungsten, vanadium, niobium, and 18 others
- Classification criteria: strategic importance + economic availability + supply chain risk
- Key applications: lithium, nickel, cobalt (EV batteries and energy storage); gallium, germanium, indium (semiconductors and solar); dysprosium, neodymium (wind turbines and EV motors); titanium, tungsten (defence)
- China's dominance: controls ~60% of global REE production, ~80% of REE processing, ~65-70% of cobalt refining, ~50% of lithium processing — making supply chain diversification urgent
- MMDR Amendment Act, 2023: inserted 24 critical and strategic minerals into Part D of Schedule I of the Mines and Minerals (Development and Regulation) Act, 1957, reserving their auction to the Central Government (not states)
Connection to this news: The pacts with Germany and Canada represent bilateral efforts to diversify India's sourcing away from China-dominated supply chains — Germany for processing technology and Canada for raw mineral access (Canada has large deposits of lithium, nickel, cobalt, and rare earths).
National Critical Mineral Mission and KABIL
India launched the National Critical Mineral Mission (NCMM) in January 2025 to create an end-to-end ecosystem for critical mineral security — from domestic exploration to overseas acquisition, processing, and recycling.
- National Critical Mineral Mission approved: January 29, 2025 (Union Cabinet)
- Duration: 7 years (FY 2024-25 to FY 2030-31)
- Total outlay: ₹16,300 crore government expenditure + expected ₹18,000 crore PSU investment
- Mission scope: exploration, mining, beneficiation, processing, end-of-life recycling
- Geological Survey of India (GSI): tasked with 1,200 exploration projects from FY 2024-25 to FY 2030-31
- KABIL (Khanij Bidesh India Limited): JV of NALCO + Hindustan Copper + MECL for overseas mineral acquisition; signed lithium exploration agreement with CAMYEN SE (Argentina) in January 2024 covering 15,703 hectares in Catamarca province
- Exploration licences for 30 deep-seated and critical minerals (under MMDR Amendment 2023) can now be granted centrally
Connection to this news: The bilateral pacts with Germany and Canada complement KABIL's overseas acquisition mandate — Germany provides processing technology while Canada provides access to mineral-rich territories where KABIL or Indian PSUs can explore and acquire assets.
India-Germany and India-Canada Bilateral Relations
India-Germany: Germany is India's largest trading partner in the European Union. The bilateral relationship is a "Strategic Partnership" (upgraded 2000) with regular Inter-Governmental Consultations (IGC) at the level of Prime Ministers/Chancellors. Germany is a major source of FDI in India (engineering, automotive, chemicals) and a key technology partner.
- India-Germany Strategic Partnership: established 2000
- Trade (FY 2024-25): bilateral trade approximately €33 billion; Germany is India's 6th largest trading partner globally
- Key cooperation areas: renewable energy, smart cities, Ganga rejuvenation, skill development, defence
- Joint Declaration of Intent (JDI): a non-binding diplomatic instrument signalling intent to cooperate in a specific sector; distinct from an MoU (more procedural) or Treaty (legally binding)
- Germany's critical mineral interest: Germany is the EU's largest industrial economy, heavily dependent on critical minerals for its automotive and manufacturing sectors; it has a "Critical Raw Materials Strategy" and is part of the EU Critical Raw Materials Act framework
India-Canada: India-Canada relations have faced diplomatic turbulence since September 2023 following allegations by the Canadian government linking Indian officials to the killing of a Sikh separatist leader in Canada. Despite this, bilateral trade and critical minerals cooperation continue through distinct channels.
- Bilateral trade (FY 2023-24): approximately USD 9 billion
- Canada's critical mineral advantage: large reserves of lithium (Quebec), nickel (Ontario/Manitoba), cobalt, uranium, and rare earths
- Canada's Critical Minerals Strategy (2022): CAD 3.8 billion investment; lists 31 critical minerals
- India-Canada diplomatic context: Canadian High Commissioner was expelled and India's High Commissioner recalled in October 2023 amid the diplomatic dispute; cooperation channels in specific sectors (minerals, trade) have continued at technical level
Connection to this news: The Cabinet pacts represent a pragmatic, sector-specific approach to advancing India's mineral security even when broader bilateral relations face challenges (as with Canada) — a common feature of India's multi-vector foreign policy.
Global Critical Minerals Architecture — Multilateral Frameworks
Several multilateral frameworks have emerged to coordinate critical mineral supply chain diversification among like-minded economies, countering China's dominance.
- Minerals Security Partnership (MSP): launched June 2022 at G7 summit; led by US; India joined June 2023; 14 members (US, EU, Australia, Canada, Japan, South Korea, UK, France, Germany, Italy, India, Finland, Sweden, Norway); focuses on financing and developing strategic mineral supply chains
- Critical Raw Materials Act (EU, 2024): sets benchmarks for EU to source at least 10% of its annual consumption of strategic raw materials from within the EU; no single third country to supply more than 65% of EU's strategic raw minerals
- QUAD Critical Minerals Working Group: established under QUAD framework (India, US, Australia, Japan); focuses on diversifying REE and battery mineral supply chains
- India's bilateral critical minerals agreements: Australia (2022), Argentina, Japan, USA, and now Germany and Canada (2026)
Connection to this news: The India-Germany and India-Canada pacts fit within the broader MSP and QUAD frameworks — bilateral agreements operationalise the multilateral intent to reduce supply chain concentration.
Key Facts & Data
- India's list of 30 critical minerals: released 2023 by Ministry of Mines
- MMDR Amendment Act, 2023: inserted 24 critical minerals into Schedule I Part D (central government auction)
- National Critical Mineral Mission approved: January 29, 2025
- NCMM outlay: ₹16,300 crore (government) + ₹18,000 crore (PSU investment) over 7 years
- KABIL formation: JV of NALCO, Hindustan Copper, MECL
- KABIL-Argentina deal: signed January 2024; 15,703 hectares in Catamarca for lithium exploration
- Minerals Security Partnership (MSP): launched June 2022; India joined June 2023; 14 members
- Joint Declaration of Intent: non-binding diplomatic instrument; distinct from MoU or Treaty
- Germany: India's largest EU trading partner; bilateral trade ~€33 billion (FY 2024-25)
- Canada's Critical Minerals Strategy: CAD 3.8 billion; lists 31 critical minerals (2022)