The Geopolitics of Critical Minerals and India’s Quest for Self-Reliance
Advitya Bahl
T
he global race for critical and strategic minerals is reshaping geopolitical alignments, supply chain strategies, and economic policies. India, as a rising economic powerhouse and a key player in the global energy transition, finds itself at the heart of this evolving landscape. As the world shifts towards clean energy, the demand for lithium, cobalt, nickel, and Rare Earth Elements (REEs) is surging, intensifying competition among nations. Given the heavy concentration of these minerals in few countries, India is increasingly seeking self-reliance in this sector to secure its energy future, technological independence, and economic stability.
Why Critical Minerals Matter for India?
India’s ambitious targets for renewable energy and electric mobility hinge on a stable supply of critical minerals. The nation plans to achieve 500 GW of non-fossil fuel capacity by 2030 and transition to electric vehicles at scale. Lithium-ion batteries, solar panels, and wind turbines—all essential components of India’s green transition—depend on critical minerals largely sourced from abroad. However, global supply chains are vulnerable due to geopolitical tensions, resource nationalism, and market manipulation.
At present, India relies heavily on imports for key minerals. More than 80% of its lithium needs are met by Australia and Argentina, while China dominates the global supply of rare earths, refining nearly 60–80% of the world’s reserves. Given China’s control over these critical resources, any trade restrictions or geopolitical disputes could severely impact India’s technological progress, industrial growth, and national security.
Geopolitical Complexities: The Risks of Import Dependence
The dominance of a few nations in the critical minerals supply chain poses strategic risks for India. For instance:
• Resource Nationalism: Countries like Indonesia and Chile have imposed restrictions on nickel and lithium exports, aiming to develop domestic processing industries. India’s dependence on such nations exposes it to policy shifts that could disrupt supplies.
• Geopolitical Rivalries: The competition between the US and China over control of critical minerals has global ramifications. China has aggressively invested in African cobalt reserves and South American lithium mines, leveraging its position to dictate market conditions. The West, in response, is forging alliances through initiatives like the US-led Minerals Security Partnership. India, balancing relations with both sides, must chart its own path to mineral security.
• Supply Chain Disruptions: The COVID-19 pandemic and the Russia-Ukraine conflict have underscored the fragility of global supply chains. Any future disruptions in key mineral-producing regions could have cascading effects on India’s industrial and energy sectors.
India’s Strategy for Mineral Self-Reliance
Recognising these vulnerabilities, India is taking proactive steps to reduce its dependency on imports and strengthen its domestic mineral ecosystem:
1. Domestic Exploration and Mining: The government has identified 30 critical minerals essential for India’s energy security and technological advancement. The full list comprises: Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium, and Cadmium.
2. Exploration Licence Auctions: In a landmark move, India recently conducted its first auction of critical mineral exploration licences. These licences, granted to both public and private entities, are expected to accelerate the discovery and extraction of key resources. By attracting investments and fostering competitive exploration, this auction signals India’s commitment to self-reliance and reducing its vulnerability to global supply chain disruptions.
3. Strategic Partnerships: India is actively forging international alliances to secure critical minerals. Through agreements with Australia, Argentina, and Chile, India is working to ensure stable lithium supplies. The India-Australia Critical Minerals Partnership aims to bolster cooperation in mineral exploration, processing, and research.
4. Global Supply Chain Diversification: India is actively engaging with resource-rich nations such as Australia, Canada, and Argentina to secure reliable supply channels. The establishment of Khanij Bidesh India Ltd. (KABIL), a joint venture between National Aluminium Company Ltd, Hindustan Copper Ltd, and Mineral Exploration Company Ltd, aims to acquire overseas mineral assets.
5. Recycling and Circular Economy: To supplement primary mineral extraction, India is focussing on urban mining—recovering critical minerals from e-waste. Given the country’s growing electronic consumption, leveraging recycling initiatives can significantly reduce dependence on virgin mineral imports.
6. Developing a Robust Processing and Refining Ecosystem: The government is fostering domestic refining and value-addition capabilities to reduce reliance on imported raw materials. Advanced metallurgical research and recycling initiatives will play a crucial role in ensuring sustainable mineral usage.
7. Legislative and Policy Reforms: The Government of India has introduced policy reforms to attract investments in mining and processing industries. The Mines and Minerals (Development and Regulation) Act amendments aim to ease exploration and licensing processes, encouraging private-sector participation.
Critical and strategic minerals are fundamental to the modern industrial ecosystem, underpinning economic growth, technological advancement, and national security. These minerals, including lithium, cobalt, rare earth elements, and graphite, serve as the backbone of emerging industries such as renewable energy, defence, electronics, and advanced manufacturing. Their escalating demand, driven by the global push towards clean energy and digital transformation, has intensified competition for secure and sustainable supply chains.
The National Critical Mineral Mission (NCMM)
India’s ambition to attain self-reliance under the Atmanirbhar Bharat initiative, while simultaneously emerging as a leader in green technology and advanced manufacturing, has necessitated a structured approach towards critical minerals. The National Critical Mineral Mission (NCMM) represents a crucial policy intervention, focussing on domestic exploration, international partnerships, and reduced import dependency to ensure long-term economic resilience.
Exploration Licence (EL) Regime
A transformative step in India’s mining policy, the Exploration Licence (EL) regime, is designed to enhance mineral discovery and accelerate the transition from exploration to production. By enabling private-sector participation alongside public institutions, this framework fosters competition, transparency, and efficiency in mineral exploration. The first-ever EL auctions launched in March 2025 mark a crucial milestone, signaling a proactive approach to resource management.
The Geological Survey of India (GSI) has significantly expanded its exploration initiatives over the past four years:
• 2020-21: 59 projects
• 2021-22: 118 projects
• 2022-23: 123 projects
• 2023-24: 122 projects
This steady increase underscores India’s commitment to mapping its mineral wealth and securing strategic resources for industrial advancement.
Exploration licenses play a crucial role in the mining lifecycle by enabling companies to conduct preliminary surveys, geological mapping, and feasibility studies. These activities help identify viable mineral reserves, assess environmental impacts, and determine economic feasibility. The issuance of exploration licenses allows private players and state-owned enterprises to invest in research and infrastructure development before moving to the extraction phase. A successful exploration phase ensures that mining operations are economically and environmentally sustainable, minimising risks and maximising resource utilisation.
Economic and Strategic Rationale for Critical Mineral Security
India’s rapid industrialisation, digital transformation, and clean energy aspirations necessitate a well-defined strategy for securing critical minerals. These minerals are integral to multiple high-growth sectors:
• Renewable Energy: Lithium and rare earth elements are indispensable for energy storage solutions, wind turbines, and solar photovoltaics.
• Defence and Aerospace: Titanium and tungsten are essential for high-performance defence systems and aerospace applications.
• Semiconductor and Electronics Industry: Gallium, germanium, and indium play a critical role in semiconductor fabrication and advanced electronics.
• Infrastructure and Mobility: Graphite and nickel contribute to electric mobility, smart grids, and urban infrastructure projects.
• Chemical and Fertiliser Sector: Potash, phosphate, and glauconite are key to ensuring agricultural productivity.
Critical Minerals and National Security
Beyond economic and industrial significance, critical minerals have deep implications for national security. Given their role in defence technologies, India must ensure an uninterrupted supply to support its strategic capabilities. The increasing geopolitical tensions around mineral-rich regions underscore the need for India to reduce reliance on a few dominant suppliers, such as China, which currently controls a significant share of the global rare earth supply.
Emerging Technologies and the Future Demand for Critical Minerals
The rise of Quantum Computing, Artificial Intelligence (AI), and Advanced Robotics will create new demands for rare metals like gallium, germanium, and indium. The future of electric aviation and hydrogen fuel cells will hinge on materials like Platinum Group Elements (PGE) and nickel. India must anticipate these trends and develop strategic reserves accordingly.
India’s Potential for Critical Mineral Recycling
Mining is not the only solution—urban mining (recovering minerals from electronic waste) and circular economy practices can significantly enhance India’s self-reliance. India generates over 1.6 million tonnes of e-waste annually, yet recycling rates remain low. Strengthening e-waste processing facilities can help extract valuable metals like lithium, cobalt, and neodymium, reducing dependence on primary mining.
Balancing Growth with Sustainability
While India pushes for mineral self-reliance, it must also address Environmental and Social Governance (ESG) concerns. Mining activities, if not managed sustainably, can lead to deforestation, water pollution, and displacement of indigenous communities. Learning from global best practices, India must implement strict ESG frameworks to ensure responsible mineral extraction and processing.
Furthermore, the rise of ‘friends-horing’—where countries prioritise trade with geopolitical allies—presents an opportunity for India to position itself as a reliable partner in the global supply chain. By aligning with like-minded nations on mineral security, India can play a crucial role in diversifying global supply chains while reducing its own strategic vulnerabilities.
(The author is correspondent of a leading national daily. Feedback can be sent to feedback.employmentnews@gmail.com).
Views expressed are personal.