Facing China curbs, India turns to private companies to secure global mineral supply

Finance Minister Nirmala Sitharaman had first announced the plan for the Critical Mineral Mission in the Union Budget for 2024–25.

Union Coal and Mines Minister G Kishan Reddy on July 3 said the Centre is actively encouraging private companies to explore and mine critical minerals overseas and bring them back to India. The move is aimed at meeting the rising demand for rare earths and critical materials in India’s growing industries.

“We are for Indian private companies mining overseas and bringing minerals back into India. We are actively encouraging them,” Reddy told reporters.

Critical minerals such as lithium, cobalt, nickel, and rare earth elements are essential for producing electric vehicles, clean energy systems, electronics, and defence equipment. India has limited reserves of these minerals, making it heavily reliant on imports.

The government is taking steps to change this. In January 2025, the Union Cabinet approved the National Critical Mineral Mission (NCMM) with an outlay of Rs 16,300 crore, and an additional Rs 18,000 crore investment from public sector undertakings (PSUs).

Reddy said, “Through the national critical mineral mission, our government will ensure mining, exploration, and support for private companies. We are working in mission mode.”

The move comes amid growing global concerns after China imposed export controls on certain rare earth-related items in April 2025. China accounts for over 90 percent of global magnet production capacity, a segment that depends heavily on rare earths.

The supply squeeze has impacted countries worldwide, including India, and reinforced the urgency to diversify supply chains.

India is currently in talks with the Chinese government to seek predictability in rare earth exports, but officials say it’s also looking beyond China for alternative global sources.

The focus on critical minerals ties into India’s Atmanirbhar Bharat (self-reliant India) strategy. The government wants to ensure a secure and stable supply of materials that are essential for energy transition, high-tech manufacturing, and national security.

Finance Minister Nirmala Sitharaman had first announced the plan for the Critical Mineral Mission in the Union Budget for 2024–25.

(With inputs from ANI)