In News:

The Union Cabinet has launched the National Critical Mineral Mission (NCMM) with a total outlay of ?34,300 crore over seven years, including ?16,300 crore government expenditure and ?18,000 crore investment from PSUs and private players.

Key Highlights:

Objectives of NCMM

• Reduce import dependence on critical minerals vital for clean energy, electronics, defence, and high-tech industries.
• Promote domestic exploration, mining, processing, and recycling of critical minerals.
• Facilitate overseas acquisition of mineral assets.
• Strengthen India’s mineral security and ensure self-reliance (Atmanirbhar Bharat).

Key Features

• Value Chain Coverage: Exploration → Mining → Beneficiation → Processing → Recycling of end-of-life products.
• Fast-track regulatory approvals for mining projects.
• Creation of mineral processing parks and promotion of sustainable extraction technologies.
• Establishing a strategic stockpile of critical minerals.
• Development of a Centre of Excellence on Critical Minerals to support R&D.
• Expansion of PRISM initiative to fund startups and MSMEs in the sector.
• Whole-of-government approach: Collaboration among ministries, PSUs, private sector, and research institutions.

Why Critical Minerals Matter

Critical minerals are essential inputs for:

• Green energy: EV batteries, solar panels, wind turbines.
• Electronics: Semiconductors, fiber optics.
• Defence: Aircraft, missile guidance systems.
• Medical technologies: MRI machines, pacemakers.

India’s clean energy transition and manufacturing competitiveness hinge on a steady and secure supply of these minerals.

India’s Import Dependence

India is dependent on imports, especially from China, for several critical minerals like lithium, cobalt, titanium, graphite, and tellurium. This exposes India to supply chain vulnerabilities amid shifting global geopolitics.

List of 30 Critical Minerals for India

Includes: Lithium, Cobalt, Nickel, Graphite, Rare Earth Elements (REEs), Beryllium, Titanium, Tungsten, Gallium, Indium, Selenium, Cadmium, etc.

Strategic and Legislative Initiatives

• Amendment to MMDR Act (1957) in 2023: Enabled auction of 24 critical mineral blocks.
• OAMDR Act (2002) amendment: Introduced transparent offshore mineral exploration.
• Duty waivers in Union Budget 2024–25: Customs duties removed on key critical minerals to promote domestic processing.
• Exploration by GSI: 368 projects in last 3 years; 227 more planned for FY 2025–26.
• KABIL: Acquired 15,703 ha in Argentina for lithium mining.

Global Context

• Global powers (US, EU, Japan) are pursuing strategies for critical mineral security.
• China dominates refining of lithium, cobalt, and REEs.
• India is part of the Minerals Security Partnership (MSP) to diversify global mineral supply chains.

Significance for India

• Ensures long-term resource security for clean technologies.
• Supports EV and renewable energy manufacturing goals.
• Enhances strategic autonomy in defence and electronics.
• Makes India an attractive hub for foreign investment in green technologies.

Challenges and the Way Forward

• Geopolitical risks in overseas asset acquisition.
• Environmental impacts of large-scale mining.
• Need for strong R&D ecosystem, financial incentives, and public-private partnerships.
• Sustainable mining practices and global collaboration are essential for long-term success.