Critical Minerals

Lithium, cobalt, nickel, rare earths and graphite are the building blocks of batteries, EVs, electronics, defence and clean energy — and India depends heavily on imports for many of them, such as lithium and cobalt, and for rare-earth magnets. Waking up to this vulnerability, India amended its mining law in 2023: lithium and five other minerals left the list reserved for public-sector miners, opening them to private companies, and the Centre gained the power to auction 24 critical minerals.

In February 2023 the Geological Survey reported an inferred 5.9 million tonnes of lithium ore at Reasi in Jammu & Kashmir, and the first critical-mineral auction tranche opened that November; by June 2026 the Centre had auctioned 56 blocks. In January 2025 the Cabinet approved the National Critical Mineral Mission, with ₹16,300 crore of government expenditure, 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 depends heavily on other countries for several of these, such as lithium and cobalt, for processing, and for rare-earth magnets. 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 National Critical Mineral Mission (2025), with ₹34,300 crore in all — ₹16,300 crore of government expenditure and ₹18,000 crore of expected PSU investment — funds exploration, overseas acquisition and recycling, while finds like the inferred 5.9 million tonnes of lithium ore in Jammu & Kashmir await further exploration. Getting this right is what makes India's whole clean-energy and EV push self-reliant.

Mining law reform 2023; inferred 5.9 million tonnes of lithium ore at Reasi, J&K (2023). 56 blocks auctioned by the Centre, plus 11 exploration-licence blocks (June 2026). National Critical Mineral Mission 2025: ₹16,300 crore government expenditure + ₹18,000 crore expected PSU investment. KABIL for overseas assets: five lithium blocks in Argentina (2024). Sources: Ministry of Mines, PIB.