Critical minerals are elements like lithium, cobalt, graphite and rare earth elements (REEs) that are essential for high-tech industries but face high supply risks. In 2026, India’s strategy transitioned from identification to the National Critical Minerals Mission (NCMM), a ₹32,000-crore initiative aimed at securing a full value chain, from domestic mining to advanced processing.
Why it matters
Energy transition: Without these minerals, India’s goals for 500 GW of non-fossil fuel capacity and 30% EV penetration by 2030 are impossible. Lithium, often called ‘White Gold’, is the heart of EV batteries.
Why it matters
Energy transition: Without these minerals, India’s goals for 500 GW of non-fossil fuel capacity and 30% EV penetration by 2030 are impossible. Lithium, often called ‘White Gold’, is the heart of EV batteries.
Strategic autonomy: Currently, India is heavily import-dependent, particularly on China for REE processing. Building a domestic ‘Rare Earth Corridor’ (Odisha, Kerala, Tamil Nadu) reduces this geopolitical vulnerability.
Domestic milestones: The Reasi Lithium deposit in J&K (5.9 million tonnes) completed its advanced G2 exploration phase in early 2026. This data-driven clarity is paving the way for a successful third attempt at a commercial auction.
Overseas assets: Through KABIL, India has launched large-scale lithium brine exploration in Argentina’s Catamarca province and is scouting for cobalt assets in Australia and Chile.
Key initiatives
Mineral security partnership (MSP): India’s entry into this US-led elite club (and the new Pax Silica initiative) ensures access to global ‘friend-shoring’ supply chains.
Fiscal push: The Union Budget 2026 exempted 25 critical minerals from basic customs duty and introduced a PLI scheme for Rare Earth Permanent Magnets (REPM).
Final outlook
The race for critical minerals is the new ‘Great Game’. By combining domestic exploration with ‘minerals diplomacy’ and processing incentives, India is ensuring that its journey toward Net Zero is built on a foundation of resource security rather than dependency.
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