India’s reliance on imports for critical minerals is high, with most of our critical minerals being entirely imported. (File Photo)
Jan 30, 2025 19:59 IST First published on: Jan 30, 2025 at 19:46 IST
Last year, the Finance Minister announced the National Critical Minerals Mission (NCMM) in her budget speech. Within a few months, the mission received Cabinet approval and was ready for launch. It places India among a select group of nations strategically reshaping their economies to meet the demands of next-generation markets. The NCMM is thus a historic milestone, accelerating our pace towards Viksit Bharat 2047 and laying the strategic groundwork for an Atmanirbhar Bharat.
Critical minerals have become the lifeblood of the new-age-technology-driven society. With nations racing toward clean energy transitions and advanced technologies, critical minerals are being seen as the “new oil”. Minerals like lithium, cobalt, and nickel are pivotal for electric vehicles, renewable energy systems and semiconductors. Similarly, phosphate, potash and glauconite are critical for farm output while titanium and beryllium are required in the aerospace and defence sectors. Critical minerals are required for India’s national, energy and food security.
Story continues below this ad
As per projections by the International Energy Agency, global demand for minerals such as lithium, cobalt and nickel is expected to triple by 2030 and quadruple by 2040, underscoring the urgency of developing resilient and diverse supply chains. For India, as it aims to become a global manufacturing powerhouse, the next seven years of the NCMM will both be a challenge and an opportunity.
Prime Minister Narendra Modi has on several occasions said that if countries do not regard custodianship of critical minerals as a global responsibility, it will emerge as a new model of colonialism. Today, nations are already feeling the heat due to the heavy geographic concentration of both natural reserves and supply chain infrastructure in a few regions. This makes the mission-mode focus on removing vulnerabilities in the critical minerals supply chain a national imperative.
Currently, India’s reliance on imports for critical minerals is high, with most of our critical minerals being entirely imported. Lithium is a stark example. Reserves and refining capacities are concentrated in a few countries, leading to the control of a huge chunk of the market. The mission aims to insulate India from geopolitical risks in the supply chain of critical minerals.
Story continues below this ad
The NCMM is designed to secure a robust supply of these minerals through domestic production, international collaborations and advanced recycling technologies. With a seven-year roadmap and a planned expenditure of Rs 16,300 crore, the NCMM covers every aspect of the value chain, from exploration and extraction to processing and recovery. The target is to explore 1,200 mineral-rich sites domestically, acquire foreign assets, and establish state-of-the-art processing facilities.
The energy transition, a cornerstone of our net-zero commitment, will significantly increase the demand for critical minerals. By 2030, India aims to derive 50 per cent of its power capacity from non-fossil fuel sources and reduce carbon emissions by one billion tonnes. Achieving these targets requires domestic manufacturing of technologies like lithium-ion batteries. The mission is designed to bridge this gap.
The NCMM is also an invitation for international partnerships and global investment opportunities. India has already taken significant steps in this direction, with agreements signed with Argentina, Zambia, and the US, among others. These partnerships are critical to diversify supply chains and secure access to mineral-rich regions. Through multilateral collaboration, we aim to create a more equitable global mineral ecosystem.
most read
What makes the NCMM transformative is its whole-of-government approach, which integrates public and private sectors, scientific research, and skill development. The mission lays equal focus on securing resources and building capacity. The establishment of mineral processing parks, centres of excellence and targeted skill development programmes will ensure that India becomes a global hub for critical mineral innovation. The NCMM also aims to generate intellectual property, with a goal of 1,000 patents in the critical mineral value chain.
The NCMM is not merely a response to the challenges of today, it is a visionary step toward shaping the future of India. It is about empowering India to lead the global transition to clean energy and secure our manufacturing ambitions. This mission is a holistic attempt to ensure economic development and secure our energy and food security goals apart from prioritising our national security.
The writer is Union Minister of Coal and Mines and represents Secunderabad Lok Sabha Constituency
