Critical minerals mission: India's $4 billion effort to become future-ready amid global tech war

The project has an expenditure of Rs 16,300 crore and is expected investment of Rs 18,000 crore by PSUs.

The Union Cabinet on Wednesday approved the National Critical Mineral Mission (NCMM) to encourage Indian PSUs and private sector companies to acquire critical mineral assets abroad and enhance trade with resource-rich countries.

The mission is expected to strengthen India's position in the global technology race and secure vital raw materials, especially amid a fierce competition over Artificial Intelligence (AI) systems in the world.

The project, which has an expenditure of Rs 16,300 crore and expected investment of Rs 18,000 crore by PSUs (outlay of $3.92 billion over 7 years), seeks to create a framework to make India self-reliant in critical minerals, which are essential for the advancement of many sectors, including hightech electronics, telecommunications, transport and defence.

A major step towards self-reliance in critical minerals!The Union Cabinets decision on National Critical Mineral Mission will encourage Indias high-tech, clean energy, defence and other key industries.https://t.co/qYfP1Dhm6t

Narendra Modi (@narendramodi) January 29, 2025

It also proposes development of stockpile of critical minerals within India.

According to a statement by the government, NCMM will encompass all stages of the value chain, including mineral exploration, mining, beneficiation, processing and recovery from end-of-life products.

The mission will intensify the exploration of critical minerals within the country and in its offshore areas.

It also aims to create a fast track regulatory approval process for critical mineral mining projects.

Additionally, the mission will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings.

According to a report by the ministry of mines in 2023, India has identified a comprehensive list of critical minerals taking into account the needs of sectors like defence, agriculture, energy, pharmaceutical, telecom, etc.

30 critical minerals

The report of the Committee on Identification of Critical Minerals identified and released a list of 30 critical minerals for India. These are: 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.

Why critical minerals matter

According to the report, these are the key sectors where critical minerals are vital for India:

1. Clean Energy Transition

Applications: Solar panels, wind turbines, batteries (EVs and grid storage), hydrogen fuel cells.

Critical Minerals: Lithium, Cobalt, Nickel, Graphite, Rare Earth Elements (REE), Vanadium, Tellurium, Silicon.

2. Defence & Aerospace

Applications: Jet engines, missiles, armour plating, night-vision systems, nuclear reactors, communication systems.

Critical Minerals: Titanium, Tungsten, Beryllium, Niobium, Tantalum, REE (e.g., Neodymium, Dysprosium), Platinum Group Elements (PGE).

3. Electronics & Telecommunications

Applications: Semiconductors, circuit boards, optical fibers, LEDs, smartphones.

Critical Minerals: Gallium, Germanium, Indium, Silicon, Tantalum, Cadmium, Rhenium.

4. Agriculture & Fertilizers

Applications: Fertilizer production (potash, phosphorus), soil health.

Critical Minerals: Phosphorus (Rock Phosphate), Potash.

5. Pharmaceuticals & Healthcare

Applications: Medical devices (implants, MRI machines), drug manufacturing, diagnostic equipment.

Critical Minerals: Cobalt, Titanium, Gadolinium (REE), Zinc, Copper.

6. Advanced Manufacturing

Applications: High-strength alloys, ceramics, catalysts, industrial machinery.

Critical Minerals: Molybdenum, Zirconium, Hafnium, Strontium, Bismuth, Antimony.

7. Renewable Infrastructure

Applications: Power transmission, grid stability, energy storage.

Critical Minerals: Copper, Aluminum (via Bauxite), Selenium, Tellurium.

8. Strategic & Emerging Technologies

Applications: AI, quantum computing, space exploration, 5G/6G networks.

Critical Minerals: REE (e.g., Yttrium, Scandium), Germanium, Gallium.

The government said that under the mission, Rs 4,000 crore will be earmarked for the Geological Survey of India (GSI), Rs 8,700 crore for the National Mineral Exploration Trust (NMET), Rs 2,600 crore for additional budgetary requirements and Rs 16,300 crore for ANRF and other research and development schemes.