What Happened
- A detailed analysis published in February 2026 documents a fundamental shift in India's policy posture on critical minerals — from a peripheral concern to a central pillar of industrial, energy transition, defence, and geopolitical strategy.
- The National Critical Mineral Mission (NCMM), launched in January 2025 with an outlay of approximately ₹16,300 crore, represents the most comprehensive government commitment yet to building end-to-end capabilities — from domestic exploration to processing and recycling.
- India remains 100% import-dependent for lithium, cobalt, and nickel — three minerals essential for batteries powering electric vehicles and grid-scale energy storage.
- The Union Budget 2026-27 extended the NCMM's mandate, emphasising the link between critical mineral security and India's defence manufacturing and clean energy transition goals.
- India's strategy encompasses three tracks: domestic exploration acceleration; bilateral agreements for overseas asset acquisition through Khanij Bidesh India Ltd (KABIL); and participation in multilateral frameworks like FORGE (Forum on Resource, Geostrategic Engagement).
- India holds substantial domestic reserves of several critical minerals: cobalt ore (44.9 million tonnes), copper (163.9 million tonnes), graphite (211.6 million tonnes), and nickel (189 million tonnes) — but lacks processing capabilities to convert ore into battery-grade materials.
Static Topic Bridges
Critical Minerals — Definition and Strategic Importance
Critical minerals are raw materials considered essential for clean energy technologies, digital infrastructure, and national defence, but whose supply chains are concentrated in a small number of countries — creating vulnerability to disruption.
- India's list of critical minerals (Ministry of Mines, 2023): 30 minerals including lithium, cobalt, nickel, graphite, rare earth elements (REEs), titanium, beryllium, vanadium, manganese, tungsten, and platinum group elements
- Why "critical": Combination of economic importance AND supply concentration risk
- Energy transition demand: A single onshore wind turbine requires ~335 kg of aluminium, ~4.7 tonnes of copper, ~335 kg of steel per MW; EV batteries require lithium, cobalt, nickel, graphite, manganese
- Lithium: EV batteries (lithium iron phosphate / lithium nickel manganese cobalt oxide); India has domestic lithium deposits in Jammu (Reasi district, ~5.9 million tonnes estimated) and Rajasthan
- Cobalt: 70%+ of global production from the Democratic Republic of Congo (DRC); highly supply-concentrated
- Rare Earth Elements (REEs): China controls ~85-90% of global REE processing despite other countries having reserves; used in permanent magnets for wind turbines and EV motors
- Domestic reserves gap: India has ore deposits but lacks refineries/processing plants to produce battery-grade lithium carbonate, cobalt sulfate, or REE oxides — the refined forms industries actually need
Connection to this news: India's 100% import dependence for lithium, cobalt, and nickel is not primarily a geology problem — India has ore deposits. It is a processing and technology gap. The NCMM's ₹16,300 crore is designed to build the missing midstream processing infrastructure and incentivise domestic refining.
National Critical Mineral Mission (NCMM) — Policy Framework
The NCMM represents India's most comprehensive critical minerals strategy, announced in January 2025 and reinforced in Budget 2026-27. It is comparable in ambition to the US Inflation Reduction Act (IRA) provisions for critical minerals or the EU's Critical Raw Materials Act.
- NCMM launch: January 2025; outlay ₹16,300 crore over the mission period
- Implementing ministries: Ministry of Mines (lead); Ministry of New and Renewable Energy; Ministry of Heavy Industries; Ministry of External Affairs (for bilateral agreements)
- Key objectives:
- Accelerate domestic exploration (GSI, MECL, PSUs to fast-track surveys)
- Simplify and expedite mining lease auctions for critical mineral blocks
- Build domestic processing/refining capacity (battery chemicals, REE oxides)
- Secure overseas mineral assets through KABIL
- Develop battery recycling ecosystem to reduce primary demand
- Participate in plurilateral frameworks (FORGE, MSP — Minerals Security Partnership)
- KABIL (Khanij Bidesh India Ltd): JV between NALCO, HCL, and MECL; bilateral deals concluded with Argentina (lithium) and Australia (critical minerals MOU); exploring Chile, Bolivia, DRC
- Mines and Minerals (Development and Regulation) Amendment Act 2023: Introduces a separate category for "critical and strategic minerals" with Central Government auction mandate; removes states' discretion on critical mineral blocks
- Geological Survey of India (GSI): Reoriented to fast-track critical mineral surveys; new national geochemical mapping initiative launched
Connection to this news: The NCMM shifts critical minerals from a "nice to have" export commodity to a strategic resource managed at the national level — analogous to how coal and uranium are managed. The MMDR Amendment 2023's provision for Central Government auctions of critical mineral blocks is the legislative expression of this strategic shift.
Geopolitics of Critical Minerals — China's Dominance and India's Response
China's dominance in critical mineral processing — not just mining — is the central geopolitical challenge. China has used this leverage in recent trade disputes, including export restrictions on gallium, germanium, graphite, and antimony since 2023.
- China's share of global critical mineral processing (2024 IEA data):
- Lithium refining: ~65%
- Cobalt refining: ~75%
- Rare earth processing: ~87%
- Graphite production: ~70%
- China's export restrictions (2023-24): Restricted exports of gallium and germanium (semiconductor materials) in August 2023; graphite restrictions from December 2023; antimony restrictions from September 2024
- US response: IRA domestic content requirements; Minerals Security Partnership (MSP) — 14 nations (G7 + Australia, India, South Korea) coordinating critical mineral supply chains
- EU response: Critical Raw Materials Act (CRMA) 2024 — targets 10% of annual consumption from domestic mining, 40% from domestic processing, 25% from recycling by 2030; no single third country to supply >65% of any critical mineral
- India-Australia Critical Minerals Partnership (2022): A$1 billion investment partnership for critical mineral supply chain development
- India in MSP: India joined the Minerals Security Partnership in 2023 — provides access to US partner country geologic data and investment support
Connection to this news: India's NCMM and KABIL strategy explicitly aims to reduce dependence on China's processing monopoly — not just for India's own supply security but to position India as an alternative supplier and processor to Western partners. This is the economic dimension of India's "strategic autonomy" doctrine in a resource-constrained world.
Battery Technology and India's EV Ambitions
Critical minerals are the upstream input for India's electric vehicle and energy storage ambitions. The PM E-Drive scheme and FAME (Faster Adoption and Manufacturing of Electric Vehicles) subsidies downstream are only as effective as the upstream mineral and battery supply chain.
- PM E-Drive Scheme (2024-26): ₹10,900 crore for EV subsidies (2-wheelers, 3-wheelers, buses) and charging infrastructure; replaces FAME-II
- Advanced Chemistry Cell (ACC) Battery PLI: ₹18,100 crore; target 50 GWh domestic battery manufacturing capacity; Ola Electric, Rajesh Exports, Hyundai-Exide among selected beneficiaries
- Import dependence on battery cells (2024-25): ~85% of lithium-ion cells imported (primarily from China, South Korea, Japan)
- Battery recycling rules: Battery Waste Management Rules 2022 (Environment Ministry); Extended Producer Responsibility (EPR) framework mandates battery collection and recycling targets; recycling can recover 85-95% of lithium and cobalt
- India's EV sales (2024-25): ~2 million units annually; target 30% of new vehicle sales as EVs by 2030
- Lithium find at Reasi, J&K (2023): GSI discovered ~5.9 million tonnes of lithium ore inferred resources — India's first major domestic lithium deposit; actual battery-grade lithium availability pending processing feasibility
Connection to this news: The NCMM's success will directly determine whether India's EV and energy storage ambitions can be built on domestically controlled supply chains or remain dependent on Chinese-processed minerals. The Reasi lithium discovery is strategically significant but converting it from ore to battery-grade material requires the processing investments the NCMM aims to catalyse.
Key Facts & Data
- NCMM launch: January 2025; outlay ~₹16,300 crore
- India's 100% import-dependent minerals: Lithium, cobalt, nickel
- India's cobalt ore reserves: 44.9 million tonnes; copper: 163.9 million tonnes; graphite: 211.6 million tonnes; nickel: 189 million tonnes
- India's critical minerals list: 30 minerals (Ministry of Mines, 2023)
- KABIL: JV of NALCO, HCL, MECL; bilateral deals with Argentina, Australia
- Lithium deposit, Reasi (J&K): ~5.9 million tonnes inferred resources (GSI, 2023)
- China's share: Lithium refining ~65%; Cobalt refining ~75%; REE processing ~87%
- Minerals Security Partnership (MSP): India joined 2023; 14 member nations
- MMDR Amendment 2023: Central Government to auction critical mineral blocks
- ACC Battery PLI: ₹18,100 crore; 50 GWh target
- Battery Waste Management Rules: 2022 (EPR framework)