What Happened
- India's accelerating clean energy transition — driven by electric vehicles (EVs), battery storage, and renewable power — is creating a surge in demand for critical minerals including lithium, cobalt, and nickel
- India currently imports more than 90% of its lithium-ion cells and almost all critical battery minerals, primarily through China-linked supply chains
- The National Critical Mineral Mission (NCMM), launched in 2025, is India's primary policy response to reduce import dependency through domestic exploration, mining, and international supply partnerships
- Global competition for these minerals is intensifying as the US, EU, and China all prioritise securing critical mineral supply chains
- Demand for lithium, cobalt, and nickel is expected to surge severalfold by 2030, driven by the global EV transition — creating a structural supply gap for countries without domestic reserves
Static Topic Bridges
Critical Minerals — Definition, Significance, and India's Supply Challenge
Critical minerals are raw materials that are economically important but face significant supply risks due to geographic concentration of production, limited substitutability, and growing demand from clean energy and defence technologies. The Ministry of Mines identified 30 critical minerals for India in 2023, based on strategic importance and supply risk. Key battery minerals include lithium (EV batteries), cobalt (cathode material), nickel (high-energy cathode), graphite (anode material), and manganese. India has limited domestic reserves of most of these minerals and depends heavily on imports, primarily from countries whose supply chains are controlled by or pass through China.
- India's 30 critical minerals list: published by Ministry of Mines (2023); includes Lithium, Cobalt, Nickel, Graphite, REEs, Copper, Gallium, Germanium, Titanium, Tungsten, Vanadium, and others
- 24 of the 30 minerals included in Part D of Schedule I of the MMDR Act, 1957 (via 2023 amendment) — Central Government now has exclusive auction authority for these
- India imports >90% of lithium-ion cells; supply chain majority China-linked
- Global lithium production: concentrated in Australia (top producer), Chile, Argentina (the "Lithium Triangle"), and China (processing dominance)
- Cobalt: >70% of global production from Democratic Republic of Congo (DRC); China processes ~80% of global cobalt
- Nickel: major producers are Indonesia, Philippines, Russia, Canada
Connection to this news: India's vulnerability is not just in primary mining — it lacks refining and processing capacity as well. Even if mineral blocks are auctioned domestically, the value chain requires investment in processing infrastructure that currently does not exist at scale in India.
National Critical Mineral Mission (NCMM) — Framework and Objectives
The National Critical Mineral Mission (NCMM) was approved by the Cabinet in January 2025 with an outlay of approximately ₹34,300 crore over seven years. It covers the full value chain: exploration, mining, beneficiation, processing, recycling, and international supply partnerships. The NCMM targets domestic supply through accelerated block auctions (100+ critical mineral blocks) and strategic stakes in overseas mineral assets. The Ministry of Mines is the nodal ministry. The Mission also leverages KABIL (Khanij Bidesh India Ltd) — a joint venture of NALCO, HCL, and MECL — to acquire strategic mineral assets abroad.
- NCMM approved: January 2025; outlay: ~₹34,300 crore (7 years)
- Nodal ministry: Ministry of Mines
- Domestic target: auction 100+ critical mineral blocks; accelerated exploration
- International strategy: KABIL acquires strategic stakes in Argentina, Bolivia, Chile, Australia (lithium, cobalt, REE)
- KABIL: Khanij Bidesh India Ltd — JV of NALCO (55%), HCL (22.5%), MECL (22.5%)
- Battery recycling target: 15-20% of domestic demand met through recycling by 2035
- Recycling obligation: 70% material recovery (2024-25) → 80% (2025-26) → 90% (from 2026 onwards)
Connection to this news: NCMM is the government's supply-side response to the clean energy minerals crunch. Its success determines whether India's EV and renewable energy targets can be achieved without substituting oil import dependency with critical mineral import dependency.
MMDR Act 1957 — Amendments for Critical Minerals
The Mines and Minerals (Development and Regulation) Act, 1957 is the primary legislation governing India's mining sector. It was significantly amended in 2021 (end of government allocation, mandatory auctions for all minerals), 2023 (24 critical minerals in Part D — Central Government gets exclusive auction rights), and 2025 (zero-waste mining, adding critical minerals to existing leases without extra royalty). The 2023 amendment also removed restrictions on private sector exploration in critical minerals, incentivising geological surveys through the National Mineral Exploration Trust (NMET).
- MMDR Act, 1957: primary mining legislation; amended multiple times
- 2021 amendment: ended discretionary allocation; all minerals through transparent auction
- 2023 amendment: placed 24 critical minerals in Schedule I Part D — Central Government's exclusive auction jurisdiction
- 2025 amendment (Mines and Minerals Amendment Bill, 2025): zero-waste mining; leaseholders can add critical minerals to existing leases without extra royalty
- National Mineral Exploration Trust (NMET): funds exploration activities; government body under MMDR Act
- District Mineral Foundation (DMF): funds local area development in mining districts
Connection to this news: The legislative reforms under the MMDR Act are designed to accelerate block auctions and reduce exploration timelines for critical minerals — a prerequisite for building domestic supply capacity to meet EV and renewable energy targets.
India's EV and Clean Energy Targets — Mineral Demand Implications
India's target of 30% EV penetration by 2030 (under PM e-DRIVE and EV30@30 initiative) and 500 GW renewable energy capacity by 2030 will generate enormous demand for critical minerals. A single EV battery requires approximately 8-15 kg of lithium, 10-15 kg of cobalt (for NMC chemistry), 20-30 kg of nickel, and 40-70 kg of graphite. Scaling to millions of EVs and gigawatts of grid storage implies demand growth measured in multiples. India's wind energy target of 140 GW by 2030 also requires rare earth elements (neodymium, dysprosium) for permanent magnet generators.
- India's EV target: 30% EV penetration in new vehicle sales by 2030
- India's RE target: 500 GW non-fossil fuel capacity by 2030; 150 GW solar already achieved (March 2026)
- Battery demand: IEA estimates lithium demand could grow 42x by 2040 under net-zero scenario
- PM e-DRIVE Scheme (Production Linked Incentive for EVs): supports domestic EV manufacturing
- Battery Waste Management Rules, 2022: introduced Extended Producer Responsibility (EPR) for battery recycling
- India's wind capacity target: 140 GW by 2030 (from ~55 GW in January 2026)
- REE (Rare Earth Elements) for wind: neodymium-iron-boron permanent magnets in direct-drive wind turbines
Connection to this news: The minerals crunch represents a systemic risk to India's clean energy ambitions. Without securing reliable, affordable supply of lithium, cobalt, and nickel — through domestic production, international partnerships, and recycling — India risks trading fossil fuel import dependency for critical mineral import dependency.
Key Facts & Data
- India's 30 critical minerals: identified by Ministry of Mines (2023); 24 under Central Government auction jurisdiction
- NCMM outlay: ~₹34,300 crore over 7 years (approved January 2025)
- India's lithium-ion cell import dependency: >90% of requirements imported
- Lithium: no significant domestic reserves; global leaders — Australia, Chile, Argentina
- Cobalt: >70% global production from DRC; >80% global processing by China
- India's EV target: 30% new vehicle sales by 2030
- India's RE target: 500 GW by 2030; solar at 150 GW (March 2026)
- Battery recycling target: 90% material recovery from 2026 onwards (Battery Waste Management Rules, 2022)
- KABIL: JV of NALCO (55%), HCL (22.5%), MECL (22.5%); overseas mineral asset acquisition
- India's wind energy capacity: ~55 GW (January 2026); target 140 GW by 2030
- IEA lithium demand growth projection: up to 42x by 2040 (net-zero scenario)