Critical Minerals

Lithium, cobalt, nickel, rare earths and graphite are the building blocks of batteries, EVs, electronics, defence and clean energy — and India imports almost all of them, often from China. Waking up to this vulnerability, India amended its mining law in 2023 to let the private sector explore and mine these minerals, ending a long state monopoly.

In 2024, lithium reserves were reported at Reasi in Jammu & Kashmir, and critical-mineral blocks began going up for auction. In 2025, the government launched the ₹16,300 crore National Critical Mineral Mission to secure supply through domestic exploration, recycling, stockpiling and overseas acquisition of mines via the state venture KABIL.

Critical minerals — lithium, cobalt, rare earths and the like — are the raw materials of clean tech: EV batteries, solar panels, wind turbines and electronics. India has almost no mining and refining capacity today, so it relies heavily on imports, especially from China. The strategy has two arms: hunt for and mine deposits at home (via the Geological Survey and new auctions), and acquire mines abroad through the state venture KABIL.

India is starting a little late here, so the next step is building mining, refining and processing capacity — the parts of the chain China dominates. The National Critical Mineral Mission (2025), backed by roughly ₹34,000 crore, funds exploration, overseas acquisition and recycling, while promising finds like the lithium deposits in Jammu & Kashmir are being proven up responsibly. Getting this right is what makes India's whole clean-energy and EV push self-reliant.

India is starting a little late here — the next step is building mining, refining and processing capacity (where China leads today) and proving reserves like J&K lithium responsibly.

Mining law reform 2023; lithium at Reasi, J&K (2024). National Critical Mineral Mission 2025: ₹16,300 crore. KABIL for overseas assets. Sources: Ministry of Mines.