Overview
India’s transition to clean energy, advanced manufacturing and defence depends heavily on Critical minerals. While the country has sizable reserves of cobalt, copper, graphite and nickel, it still imports most of the high‑purity products such as lithium chemicals and rare‑earth oxides. The dominance of China in processing makes India vulnerable to supply shocks.
Key Developments (2023‑2026)
- 2023: Government identified 30 Critical minerals and launched the National Critical Mineral Mission.
- 2024: China processed >90% of rare‑earths and graphite, ~75% of cobalt and 70% of lithium chemicals.
- 2025: EU introduced the EU Critical Raw Materials Act with caps on single‑country dependence.
- 2026 (May): India‑U.S. framework on critical minerals signed, opening diplomatic channels for supply diversification.
- 2026‑27 Budget: Proposed rare‑earth corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu.
Important Facts & Figures
- Top‑three refining countries hold 86% of global market share for copper, lithium, nickel, cobalt, graphite and rare‑earths (2024).
- India’s reserves: cobalt 44.9 Mt, copper 163.9 Mt, graphite 211.6 Mt, nickel 189 Mt.
- Projected cumulative demand for critical energy‑transition minerals by 2070: 169 million tonnes – 51% higher than current‑policy pathway.
- Potential copper shortfall of 30% by 2035 if pipeline projects do not materialise.
- Recycling could meet up to 25% of copper and graphite demand by mid‑century.
Exam Relevance
The topic cuts across multiple GS papers. GS‑3 (Economy) requires understanding of supply‑chain security, strategic minerals, and their impact on industrial policy. GS‑2 (Polity) touches on regulatory reforms and international agreements such as the India‑U.S. framework. GS‑4 (Ethics & Integrity) raises questions about resource stewardship and equitable access. Knowing the numbers, policy measures and geopolitical stakes helps answer questions on energy transition, defence preparedness and India’s global positioning.
Way Forward
- Make processing and refining a national industrial priority with dedicated fiscal incentives and infrastructure clusters.
- Establish a strategic stockpile for lithium, cobalt and rare‑earth chemicals.
- Accelerate research‑development through public‑private partnerships to improve high‑purity extraction technologies.
- Expand overseas acquisitions – target at least 50 mining assets by 2031 as per the Mission.
- Implement clear risk‑thresholds for each mineral and integrate recycling targets into national supply‑chain planning.
By converting its reserve base into a full value chain – from exploration to high‑purity products – India can reduce strategic vulnerability and support its clean‑energy, defence and manufacturing ambitions.