Introduction
As the world accelerates the deployment of renewable energy sources and green technologies, a new form of dependency is emerging in efforts to meet net-zero goals. Critical minerals needed for green technologies and renewable energy are increasingly used as a geopolitical lever amid tensions, leading to supply chain and price disruptions. Currently, China has dominance in critical minerals, especially in processing and refining.[1] The Belt and Road Initiative (BRI) has been instrumental in helping China establish economic and diplomatic ties with mineral-rich countries, thereby enabling it to achieve dominance in processing and refining.[2] Chinese financial institutions have also played a key role in establishing China’s dominance, particularly in processing and refining. China’s ability to finance high-risk, long-term projects has evolved since the BRI, with these projects now bankrolled by state-led banks, giving China influence in resource-rich countries.[3] For India, which is highly import-dependent for most critical minerals needed for its net-zero ambitions,[4] it is essential to become atmanirbhar, i.e., self-reliant, to achieve its goal of 500 GW of clean energy by 2030 and net-zero by 2070.
Domestic Policies of India
India today stands at a critical juncture, where the energy transition needed to reduce its hydrocarbon bill risks deepening its dependence on mineral imports, as critical minerals have become the new frontiers of geopolitics. The Govt. of India launched the National Critical Mineral Mission (NCMM) in 2025 for a period of seven years, from 2024-2025 to 2030-2031, with a proposed expenditure of Rs. 16300 crore and an expected expenditure of Rs.18000 crore by Public Sector Undertakings (PSUs) and other stakeholders[5]. There is no universal definition of what constitutes critical minerals. Countries identify critical minerals based on their importance to energy, the economy, and national security, as well as their susceptibility to supply chain disruptions and price shocks. Based on this assessment, the Govt. of India currently lists 31 minerals as critical minerals[6].
To boost investment in the critical minerals sector, the Union Government has amended the Mines and Minerals (Development and Regulation) Act, 1957[7] to liberalise the mining sector. The reforms simplified and expanded mineral access by allowing leaseholders to add critical minerals to existing leases at no extra cost and by removing sale restrictions on captive mines. This amendment aims to consolidate India’s mining framework flexibly to enhance critical mineral extraction. India is also the third-largest e-waste generator,[8] and to turn this waste into a reliable source for the critical mineral supply chain, the Government of India has enacted a Rs 1500 incentive scheme for critical mineral recycling to develop recycling capacity for the separation and production of critical minerals from secondary sources.[9]
The Government of India has also developed a policy to extract critical minerals from mine waste[10] and, in principle, has approved a National Critical Mineral Stockpile, under which India will maintain a two-month stockpile of critical minerals, with private-sector involvement, to safeguard itself against supply-chain disruptions. In this year’s Union Budget, the Government of India has also proposed a dedicated rare-earth corridor in Odisha, Tamil Nadu and Kerala to develop a domestic ecosystem of mining, refining and manufacturing, thereby reducing import dependence and enhancing domestic capabilities in strategic sectors. The measures taken by the government underscore the importance of critical minerals to India’s development across sectors and the urgency of becoming self-reliant in this sector. However, more needs to be done for India to become self-reliant in the critical minerals needed for its energy needs.
What India Should Do
India needs to boost its exploration efforts. Although India is blessed with abundant resources, only about 20% of its geological resources have been explored[11]. Therefore, it is essential to ramp up India’s exploration capability, with significant investments in advanced geological surveys, deep-seated mineral prospecting, and data-driven resource mapping. Mining is associated with a long gestation period, especially in metal mining, which deters investors. Research has also shown that mines take an average of 16.3 years from discovery to production, with 12.3 years of those 16.3 years spent on discovery and exploration studies.[12] Therefore, it is imperative to leverage artificial intelligence (AI), machine learning, remote sensing and geospatial technologies for exploration as well as for recovering critical minerals. Leveraging these technologies can not only help identify deposits but also analyse geospatial datasets, reduce the risk associated with early-stage exploration and ramp up the recovery process for critical minerals. These technologies also improve the lifespan of critical machinery and have played a major role in operations and management[13]. Therefore, it is imperative to adopt these technologies to deliver faster results, thereby helping attract private-sector investment.
India has engaged with both the Global North and the Global South to secure access to critical minerals. To complement domestic efforts, India has created KABIL, a joint venture (JV) between three PSUs, National Aluminium Company Ltd. (NALCO), Hindustan Copper Limited (HCL) and Mineral Exploration & Consultancy Ltd. (MECL), in the ratio of 40:30:30 for overseas mineral acquisition[14]. It has multiple bilateral agreements and participates in several initiatives to diversify the critical mineral sector. However, there is a need to ramp up diplomacy to secure technology transfer agreements. While access to critical minerals is important, technology transfer is equally important, as India lags significantly in processing and refining[15].
These partnerships should focus on rare earth separation technologies, battery-grade material processing, and recycling technologies. The government should allow foreign companies to set up processing and refining facilities in the country, either through joint ventures (JVs) with domestic companies or through other incentives. Special economic zones (SEZs) for critical mineral processing and refining can be leveraged to attract investment and enable technology transfer to Indian industries. There is also a need for collaboration between PSUs, private-sector companies, research institutions, and international partners to accelerate the development of the domestic mining value chain. The government has added 9 research institutions as Centres of Excellence (CoEs) to strengthen the mining value chain[16]. Each CoE must bring in at least two industry partners and two research and development (R&D)/academic partners[17].
The Government of India recognises that developing the mining chain requires an integrated approach rather than relying solely on mining. Therefore, all stakeholders with diverse expertise must collaborate to build an integrated domestic critical mineral supply chain to achieve self-reliance and move towards net-zero by 2070. India also needs to reform its regulatory clearance processes. Clearances remain the most critical bottleneck in developing India’s mineral value chain. However, under the MMDR, Part D designates critical, strategic and atomic minerals as exempt from public consultations[18]. However, clearances under the Environment Protection Act and the Forest Protection Act remain a hurdle, as they are unpredictable, time-consuming and multi-layered, further extending the already long time periods associated with mining. India must develop a single-window, time-bound clearance mechanism, especially for critical mineral projects, to fast-track them. The fast-track mechanism should include environmental, tribal, water and forest clearances without adversely affecting the project, communities and the ecology.
India is currently evaluating a mix of tax support and fiscal incentives through outcome-linked programs to localise components needed for battery manufacturing for electric vehicles (EVs).[19] The Ministry of Heavy Industries is running a Production Linked Incentive (PLI) scheme, namely “National Programme on Advanced Chemistry Cell (ACC) Battery Storage,” with a total outlay of ₹18,100 crore to establish 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity[20]. However, India should also prioritise developing a battery recycling ecosystem. Battery recycling remains the quickest and one of the most cost-effective ways to reduce India’s import dependence.
As India aims to have 30% of its fleets as EVs[21], the volume of end-of-life batteries will grow; therefore, there is a need to develop a secondary supply of cobalt, nickel and lithium, which, if systematically recovered, can help in reducing import dependence, as India imports all of these critical minerals in near totality. This technology would also help insulate India from price shocks and supply chain vulnerabilities, as China currently dominates the global battery trade.[22] The prioritisation of battery recycling will also help India develop capabilities in technologies such as hydrometallurgical and recycling technologies, which will enable India to develop midstream processing, a process in which raw mineral concentrates or ores are transformed into refined or chemically enhanced products suitable for downstream manufacturing processes[23].
India lags significantly in midstream capability, and developing battery recycling would help India not only build midstream capacity but also support the adoption of circular economy principles. Despite being the third-largest producer of e-waste, India’s waste sector is largely informal, leading to poor metal recovery and harming the environment, public health, and the workforce.[24] It is estimated that India generated around 6.2 million tonnes of e-waste; however, only 2 million tonnes is formally recycled.[25] For e-waste to function as a genuine source of critical minerals, it is imperative that Extended Producer Responsibility (EPR) be strengthened. Under the Circular Economy Framework, multiple waste management rules were notified, including an EPR framework related to recycling and reuse.[26] However, enforceability has been an issue in India because the EPR portal lacks a wide array of critical minerals needed for the energy transition.[27] To strengthen the EPR framework for critical mineral recovery, it is essential that the EPR portal include all 31 critical minerals. It is also important to set mineral recovery targets and provide incentives for formal recycling. These reforms and incentives can help strengthen the EPR framework and, subsequently, critical mineral recovery.
There is also a need for a dedicated financing mechanism to support early-stage, high-risk critical mineral projects, as these projects have long gestation periods and uncertain returns. India can adopt the model of Japan, where the Japan Organization for Metals and Energy Security (JOGMEC), a Japanese government body, is tasked with collaborating with both government agencies and the private sector to secure a stable supply of mineral resources needed by Japanese industry. JOGMEC also assists Japanese companies with exploration and development by providing private equity capital and liability guarantees, supports the technical stage of early metal resource development, and carries out technological development.[28]
India can also adopt a tax credit for mining exploration, in the lines of Canada’s, under which a 15% tax credit is given to investors in junior mining and exploration[29] companies, making it easier for these companies to raise capital for early-stage exploration. While both models differ in their approach to government involvement, they converge on the principle that some form of state intervention in these projects is necessary, either directly or through policies. India can establish a fund that addresses the full spectrum of financial incentives needed to enhance the critical mineral value chain. There is also a need to develop ports and logistics infrastructure. Ports and logistics infrastructure are prerequisites for enabling the critical mineral value chain; however, they are underappreciated. India’s port investments have been tilted towards green hydrogen and ammonia handling, with Kandla, Paradip and Tuticorin designated hubs under the National Green Hydrogen Mission (NGHM)[30].
No designated ports exist under NCMM. China recognised early on the importance of ports and logistics infrastructure. Through the BRI, China has systematically invested in infrastructure linking mineral-rich regions to shipping routes, giving it easy access to minerals in Africa and Latin America. This ensures that China controls the most cost-effective routes[31] for critical mineral supply chains, including mines, infrastructure, and finance. This, combined with China’s dominance in processing and refining, gives China leverage over the global mining supply chain. Therefore, it is essential to identify ports and analyse the need for logistical infrastructure, both domestically and overseas, in the regions where India is acquiring mineral assets, so as to become self-reliant in critical minerals.
To develop an integrated critical minerals value chain, human capital is a fundamental component. India has to invest significantly in its human capital to become self-reliant in the critical minerals value chain. India has to build capacity in underground mining, ore handling, equipment operations and safety protocols. The Ministry of Mines, in coordination with the Skill Council of the Mining Sector, launched an initiative to train 5.7 million workers in mining-related activities by 2030, and the NCMM also has skill development as a component, aiming to train 10,000 workers.[32] However, the skills component has to prioritise vocational training alongside technical training to develop a capable workforce in the critical mineral sector.
Developing Next-Gen Energy Carrier for Atmanirbhar Bharat and Energy Security
It is imperative for India to develop the critical mineral value chain as India aims to meet its net-zero goals, because the question is not merely about deploying resources, but about how they are stored, transported and converted across the value chain. Therefore, it is imperative to build a model where extraction is combined with recovery, production is combined with recycling, and import substitution is coupled with the circular economy. Each of the technologies needed to meet net-zero goals has varied mineral requirements, and each of those mineral requirements will have some or other supply chain vulnerabilities. Therefore, it is important to build an effective foundation for a critical mineral supply chain. In India’s context, atmanirbharta in critical minerals must be achieved through intelligent extraction, recycling and recovery.
India’s pathway to net-zero depends on technologies such as green hydrogen, green ammonia, and advanced battery chemistries. These technologies have distinct needs, so it is essential to ensure a reliable critical mineral supply chain. For instance, green hydrogen production via electrolysis requires platinum-group metals for proton exchange membrane electrolysers, and green ammonia synthesis at scale requires a reliable nitrogen infrastructure and energy storage capacity, which depend on lithium, cobalt, and nickel. Solid-state batteries, another crucial green technology for energy storage in both grid-scale applications and electric mobility, require lithium, manganese, and rare earth elements in volumes that India cannot produce domestically.
To develop these energy technologies at scale, India has to ensure that its critical minerals strategy and energy transition plans are not operating in silos. All the schemes, such as NCMM, NGHM and ACC PLI, must be brought under a single coordinating framework that aligns mineral availability projections with technology deployment. Without integrating critical mineral availability and technology deployment, India risks investing heavily in manufacturing capacity that will remain constrained by critical mineral bottlenecks.
India also has to invest in indigenous R&D for next-generation battery chemistries- particularly sodium-ion and solid-state architectures – to reduce dependence on the most geopolitically vulnerable minerals. CoEs under NCMMs have to work on alternative material pathways. Atmanirbharata in critical minerals is not a standalone objective; rather, it is the enabling condition for every net-zero ambition India has set for itself.
Author Brief Bio: Trishala Sancheti is a Research Fellow at India Foundation. She holds an MSc in International Politics from SOAS, University of London, and a Post Graduate Diploma in Business Management from XLRI Jamshedpur (online). Her professional experience spans the mining, consulting, and waste management sectors.
Endnotes:
[1] Rodrigo Castillo and Caitlin Purdy, “China’s Role in Supplying Critical Minerals for the Global Energy Transition: What Could the Future Hold?” (Washington, DC: Brookings Institution, July 2022), https://www.brookings.edu/wp-content/uploads/2022/08/LTRC_ChinaSupplyChain.pdf.
[2] CaixaBank Research, “China’s Alchemy: How It Transforms Critical Minerals into Global Power,” January 21, 2026, https://www.caixabankresearch.com/en/economics-markets/commodities/chinas-alchemy-how-it-transforms-critical-minerals-global-power.
[3] Shreya Bajaj and Amit Sheoran, “Unearthing Influence: China’s Global Strategy for Transition Minerals,” SAIS Review of International Affairs, November 18, 2025, https://saisreview.sais.jhu.edu/unearthing-influence-chinas-global-strategy-for-transition-minerals/.
[4] Keertiman Upadhyay and Romil Sethi, “India’s Critical Minerals Push Faces Funding Gap: IEEFA,” Argus Media, May 12, 2026, https://www.argusmedia.com/en/news-and-insights/latest-market-news/2825753-india-s-critical-minerals-push-faces-funding-gap-ieefa.
[5] Ministry of Mines, Government of India, “India’s Critical Mineral Mission: Securing the Minerals of Tomorrow,” backgrounder, Press Information Bureau, September 2025, https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=155158&ModuleId=3.
[6] Ministry of Coal, Government of India, “Government Notifies Coking Coal as Critical and Strategic Mineral under MMDR Act, 1957,” Press Information Bureau, January 29, 2026, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2219947.
[7] “Mines and Minerals Amendment Bill Gives Liberty to Leaseholder to Add Other Minerals in Existing Lease,” News on AIR, August 19, 2025, https://newsonair.gov.in/mines-and-minerals-amendment-bill-gives-liberty-to-leaseholder-to-add-other-minerals-in-existing-lease/.
[8] P. B. Jayakumar, “India Becomes Third Largest E-Waste Generator as Tech Boom Fuels Surge,” Fortune India, 2025, https://www.fortuneindia.com/business-news/india-becomes-third-largest-e-waste-generator-as-tech-boom-fuels-surge/121182.
[9] Cabinet Committee on Economic Affairs, Government of India, “Cabinet Approves Rs. 1,500 Crore Incentive Scheme to Promote Critical Mineral Recycling in the Country,” Press Information Bureau, September 3, 2025, https://archive.pib.gov.in/newsite/PrintRelease.aspx?relid=275591.
[10] Ministry of Mines, Government of India, Policy for Exploration of Critical Minerals in New Projects and Recovery of Critical Minerals from Overburden, Dumps and Tailings of Existing Mines, 2025 (New Delhi: Ministry of Mines, December 2025), https://mines.gov.in/admin/storage/ckeditor/Tailing_Policy_1770982901.pdf.
[11] Anil Agarwal, “Critical Minerals and India’s Role in Securing a Low Carbon Global Economy,” World Economic Forum, January 17, 2025, https://www.weforum.org/stories/2025/01/critical-minerals-india-securing-low-carbon-global-economy/.
[12] Paul Manalo, “Average Lead Time Almost 18 Years for Mines Started in 2020–23,” S&P Global Market Intelligence, April 10, 2024, https://www.spglobal.com/market-intelligence/en/news-insights/research/average-lead-time-almost-18-years-for-mines-started-in-2020-23.
[13] Jasper Ivan Madlangbayan and Tamara Thorne, “A Peek at AI Revolution in Mining: Promise Meets Peril,” S&P Global Market Intelligence, February 6, 2025, https://www.spglobal.com/market-intelligence/en/news-insights/research/a-peek-at-ai-revolution-in-mining-promise-meets-peril.
[14] Khanij Bidesh India Limited, “About Kabil India,” KABIL India, accessed June 3, 2026, https://kabilindia.in/.
[15] International Trade Administration, US Department of Commerce, “India – Mining and Critical Minerals,” Country Commercial Guides, last modified April 17, 2026, https://www.trade.gov/country-commercial-guides/india-mining-and-critical-minerals.
[16] “Ministry of Mines Recognizes Two More Centres of Excellence under the National Critical Mineral Mission,” Press Information Bureau, Ministry of Mines, Government of India, October 24, 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2182381.
[17] “Ministry of Mines Issues Guidelines for Setting up of Centres of Excellence under the National Critical Mineral Mission,” Press Information Bureau, Ministry of Mines, Government of India, April 16, 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2122219.
[18] Nikhil Ghanekar, “Environment Ministry Exempts Critical, Atomic Mineral Mining from Public Consultation,” Indian Express, September 10, 2025, https://indianexpress.com/article/india/environment-ministry-exempts-critical-atomic-mineral-mining-public-consultation-10241159/.
[19] Twesh Mishra, “India Boosts Local Battery Component Manufacturing with Tax Incentives,” ET EnergyWorld, May 30, 2026, https://energy.economictimes.indiatimes.com/news/power/india-boosts-local-battery-component-manufacturing-with-tax-incentives/131403336.
[20] Ministry of Heavy Industries, Government of India, “Advanced Chemistry Cell (ACC) Batteries and Domestic Capacity,” Press Information Bureau, December 12, 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2202973.
[21] Office of the Principal Scientific Adviser to the Government of India, “Electric Vehicles,” PM-STIAC Mission, accessed June 9, 2026, https://www.psa.gov.in/mission/electric-vehicles/36.
[22] Gavin Clark, “China Dominates Global Trade of Battery Minerals,” Today in Energy, US Energy Information Administration, May 21, 2025, https://www.eia.gov/todayinenergy/detail.php?id=65305.
[23] United Nations Economic Commission for Europe, Expert Group on Resource Management, Accelerating Midstream Value Addition for Sustainable Critical Minerals Supply Chains through the United Nations Framework Classification for Resources and the United Nations Resource Management System, Policy Brief ECE/ENERGY/GE.3/2026/3 (Geneva: UNECE, March 2026), https://unece.org/sites/default/files/2026-03/ECE_ENERGY_GE.3_2026_3_Midstream%20Value%20Policy%20Brief_EN.pdf.
[24] Simhadri Pavankumar and Sudipta Mondal, “Unregulated and Unseen: Understanding Why the Majority of E-Waste Recycling in India Is Handled by the Informal Sector,” PCI India, February 19, 2025, https://www.pciglobal.in/unregulated-and-unseen/.
[25] Subhrajit Goswami, “Rs 51,000 Crore Worth of Materials in India’s E-Waste, Most Slips Through the System,” Down to Earth, May 4, 2026, https://www.downtoearth.org.in/waste/rs-51000-crore-worth-of-materials-in-indias-e-wastemost-slips-through-the-system.
[26] Ministry of Environment, Forest and Climate Change, Government of India, “Parliament Question: Circular Economy Framework and Extended Producer Responsibility,” Press Information Bureau, March 23, 2026, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2244104®=3&lang=1.
[27] Tribune News Service, “India’s E-Waste Management Framework Falls Short on Critical Minerals, Study Finds,” Tribune, February 19, 2026, https://www.tribuneindia.com/news/india/indias-e-waste-management-framework-falls-short-on-critical-minerals-study-finds/.
[28] Japan Organization for Metals and Energy Security (JOGMEC), “Japan Organization for Metals and Energy Security (JOGMEC),” Mining Indaba, accessed June 1, 2026, https://miningindaba.com/sponsor-list/jogmec.
[29] UNCTAD Investment Policy Hub, “Canada — Extends Tax Credit for Mining Exploration,” Investment Policy Monitor, March 3, 2025, https://investmentpolicy.unctad.org/investment-policy-monitor/measures/5333/canada-extends-tax-credit-for-mining-exploration.
[30] Ministry of Mines, Government of India, “India’s Critical Mineral Mission: Securing the Minerals of Tomorrow,” backgrounder, Press Information Bureau, September 2025, https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=155158&ModuleId=3.
[31] Paul Nantulya, “China’s Critical Minerals Strategy in Africa,” Spotlight, Africa Center for Strategic Studies, December 9, 2025, https://africacenter.org/spotlight/china-africa-critical-minerals/.
[32] Ministry of Mines, Government of India, “National Critical Mineral Mission
(NCMM): 2024–25 to 2030-31” (presentation, New Delhi, January 2025), https://mines.gov.in/admin/storage/ckeditor/DAY_1_PPT_4_1737542656.pdf.
