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Informist, Monday, Jun. 30, 2025

 

NEW DELHI – The government notified the details of National Critical Mineral Mission, setting ambitious targets to be achieved by 2030-31 (Apr-Mar), including the completion of 1,200 critical mineral exploration projects and the auction of 100 critical mineral blocks.

 

The mission, the notification read, aims to meet up to 10% of the national annual demand for critical minerals by 2031 through domestic production, contributing significantly to India's strategic objective of self-sufficiency. Additionally, it said, Indian companies will secure at least 50 overseas mining assets, including key battery minerals like lithium, nickel, and cobalt, to ensure a stable supply and meet 5% of annual critical mineral demand by 2031.

 

The mission will focus on recycling at least 10% of the nation's annual consumption of critical minerals, reinforcing a circular economy model, and reducing dependence on primary raw materials. Furthermore, the mission will support 100 domestic research and development projects and numerous international collaborative initiatives to advance extraction, processing, and recycling technologies.

 

The government will implement expedited regulatory approvals for critical mineral projects and foster bilateral and multilateral partnerships with resource-endowed nations to ensure secure access to critical minerals. A 'National Critical Minerals Stockpile' will also be created to mitigate risks from global supply chain disruptions, it said. 

 

The government, it said, will strategically implement seven pivotal measures--increasing domestic critical minerals production, acquisition of critical mineral assets abroad, recycling of critical minerals, trade and markets, scientific research and technological advancement for critical minerals, human resource development, and developing effective funding, financing, and fiscal incentives.

 

An "Empowered Committee" on critical minerals, supported by a dedicated Mission Secretariat, will provide governance and ensure effective coordination of initiatives. To facilitate investments, the government will issue guidelines empowering Central PSUs and their joint ventures and subsidiaries to make commercial decisions on investing in mineral assets overseas, it said. 

 

The government anticipates that public sector players and other companies will invest approximately INR 25 billion per year in critical mineral assets abroad, cumulatively leading to an investment of around INR 180 billion by FY31. This move is expected to enhance India's access to strategic minerals and support its economic growth. The government, as per the notification, will facilitate central public sector players in leading asset acquisitions in association with private companies contributing capital and sharing revenue. "Equity participation by Central Public Sector Undertakings can provide financial support while sharing the risk, fostering a collaborative environment whereas, offtake agreements will secure supply security to Indian manufacturing. Private companies will have option to go solo or (form) joint ventures with state owned companies," it said.

 

By empowering PSUs to make investments abroad, the government aims to secure critical mineral supplies and promote self-sufficiency in the sector. The Empowered Committee will play a crucial role in guiding these efforts and ensuring the successful implementation of the government's strategy, the notification said.

 

Under the mission, the central government will encourage state governments to expedite statutory clearances for critical minerals projects and promote exploration, mining, processing, and research and development in the critical minerals value chain, it said. State Public Sector Undertakings will also be encouraged to participate in acquiring mineral assets abroad or making financial investments to support central PSUs.

 

The notification cited the example of world's major economies prioritising the development of capabilities in critical minerals' value chains, focusing on job creation and economic growth while leveraging private capital and innovation. "The US, European Union, and Japan have introduced policies like the Inflation Reduction Act, Critical Raw Materials Act, and Economic Security Act, respectively, to incentivize local supply chains through tax credits, investments, and regulations."

 

Major producers like the African Union are transitioning from raw material extraction to value addition, seeking to integrate into global value chains, it said. "Countries in Latin America, such as Chile and Argentina, are developing national strategies to attract investments and build lithium value chains. Brazil and Peru are also focusing on strategic minerals, aiming to enhance value creation and diversify beyond raw material extraction."

 

The National Critical Mineral Mission was announced by the Union Finance Minister Nirmala Sitharam in the Union Budget for FY25 on Jul. 23, last year. The mission will be operational for seven years till FY31, with the objective of securing India's critical mineral supply chain and promoting self-sufficiency in the sector.  End

 

Reported by Pallavi Singhal

Edited by Akul Nishant Akhoury

 

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