NATIONAL CRITICAL MINERALS MISSION

National Critical Minerals Mission is approved by the Indian government with an outlay of ₹34,300 crore over seven years.  Aims to reduce import dependence on critical minerals, enhance domestic exploration and processing, and support green energy transition.

What Are Critical Minerals?

  • Definition: Essential minerals for economic development & national security.
  • Supply Chain Risk: Limited availability or concentration in specific regions can cause disruptions.
  • India’s List (30 Critical Minerals): Includes lithium, cobalt, copper, germanium, tungsten, rare earth elements, etc.

Key Uses:

  • Renewable Energy → Solar panels, wind turbines, power grids.
  • Electric Vehicles (EVs) → Battery production & charging infrastructure.
  • High-Tech Industry → Electronics, defense equipment, medical devices.

Why Are Critical Minerals Important for India?

  • Foundation of Modern Technology
    • Used in mobile phones, EV batteries, solar panels, medical devices, etc.
  • Energy Transition
    • Essential for renewable energy (solar panels, wind turbines, advanced batteries).
    • Crucial for achieving Net Zero commitments.
  • Futuristic Economy
    • Key to green & digital economy.
    • Includes lithium, graphite, cobalt, titanium, rare earth elements.
  • Self-Reliance
    • Helps plan & acquire mineral assets for long-term needs.
    • Reduces 100% import dependency on certain elements.

Key Objectives of National Critical Minerals Mission:

  • Enhancing Domestic Exploration
    • Major fund allocation for mineral exploration in India and offshore areas.
  • Reducing Import Dependence
    • India heavily imports minerals like lithium, cobalt, nickel, and rare earth elements (essential for EVs, batteries, and renewable energy).
  • Developing Processing & Recycling Capabilities
    • Investment in mineral processing parks, recycling technologies, and sustainable extraction research.
  • Overseas Mineral Acquisitions
    • Encouraging public sector enterprises (PSUs) & private companies to acquire mineral assets abroad for a steady supply.
  • Regulatory & Financial Support
    • Fast-track approvals & financial incentives for exploration and development.

Key Features of NCMM

  • Total Outlay: ₹34,300 crore (₹16,300 crore government expenditure + ₹18,000 crore from PSUs/private sector).
  • Encourages Trade & Foreign Acquisition of critical minerals.
  • Intensifies domestic exploration (onshore & offshore).
  • Covers all stages: Exploration, mining, beneficiation, processing, and recycling.
  • Financial Incentives: For exploration & technology development.
  • Coordination: Collaboration with ministries, PSUs, private firms, and research institutions.
  • Infrastructure Development: Establishment of mineral processing parks, centers of excellence, and critical mineral stockpiles.

Impact on India’s Energy Transition

  • Secures mineral supply chains for the clean energy sector.
  • Strengthens domestic EV & renewable energy manufacturing.
  • Boosts India’s role in the global critical minerals market.
  • Attracts foreign & private investment in mining & processing.

Government Strategy & Implementation

  • Expedited Mining Approvals → Fast-track regulatory process.
  • Stockpile Development → Strategic reserves of critical minerals.
  • Policy Reforms → Amended Mines & Minerals (Development & Regulation) Act, 1957 (2023) for auctioning 24 strategic minerals.
  • Geological Survey of India (GSI) Projects →
    • 368 mineral exploration projects (last 3 years).
    • 227 projects planned for 2025-26.
  • Import Duty Waivers → FY25 budget removed duties on critical minerals to boost domestic processing & manufacturing.

Challenges

  • Geopolitical Risks → Acquiring overseas mineral assets depends on global politics.
  • Environmental Concerns → Mining must balance sustainability.
  • Investment Risks → Requires strong policy support for private sector participation.

Way forward:

  • Collaboration with research institutions, industries, & international partners.
  • Strengthening domestic recycling & processing capacities.

The National Critical Minerals Mission is a game-changer in securing India’s mineral supply. It reduces import dependency, boosts domestic capabilities, and ensures a clean energy future.  Strengthens India’s global position in the strategic minerals supply chain.

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