Latest news with #NCMM
Indian Express
2 days ago
- Business
- Indian Express
Critical minerals are a strategic asset – India must not fall behind
Critical minerals are emerging as the defining geoeconomic axis of the 21st century. These are no longer peripheral to industrial development but lie at the heart of advanced manufacturing, clean energy systems, strategic technologies and national security. Energy transition, digitalisation and the pursuit of supply chain resilience are rapidly amplifying the demand for minerals such as lithium, cobalt, nickel, graphite and rare earth elements. Their availability and accessibility will determine the pace and quality of growth for all major economies. Unlike fossil fuels, critical minerals are characterised by high geographical concentration, limited transparency and complex value chains. China dominates the midstream processing stage for most key minerals, accounting for over 90 per cent of rare earth refining, 70 per cent of cobalt processing and close to 60 per cent of lithium conversion capacity. These are not incidental advantages but outcomes of decades of strategic investment, policy coherence and state-backed industrial planning. With China 20 years ahead in the supply chain race, India cannot afford to anchor its future energy, mobility or technology aspirations on supply chains that remain opaque, concentrated and subject to political risk. In 2022, the Ministry of Mines identified 30 critical minerals based on their strategic importance to clean energy and future technologies, high import dependence, domestic resource constraints and relevance for agricultural and industrial needs. In January, the National Critical Mineral Mission (NCMM) was announced to secure critical mineral supply chains by ensuring mineral availability. Its success will rest on how effectively it translates intent into action. Currently, India is 100 per cent import dependent for lithium, cobalt, nickel, rare earth elements and silicon. At the same time, India's domestic resource base for critical minerals is underdeveloped. The Geological Survey of India has ramped up exploration, with 195 projects underway over the past year and another 227 approved for the upcoming year. In response to the inclusion of critical minerals in the Mines and Minerals (Development and Regulation) Act, the government launched four tranches of auctions for critical mineral blocks last year, and a fifth was concluded in January 2025. However, the auctions revealed persistent challenges. A large number of blocks were annulled as high capital costs, limited domestic processing capacity and a shortage of technically qualified bidders dampened participation. These outcomes underscore the need for policy refinement to attract credible investment and build industry confidence in the viability of critical mineral development. As India seeks to scale up domestic exploration, it must also confront a major structural limitation: Lack of sufficient capacity to refine and process minerals into battery-grade or component-ready materials. This midstream bottleneck risks locking the country into a dependence on foreign processors, especially for lithium, cobalt and rare earths. To address this, the NCMM plans to set up dedicated mineral processing zones with modern infrastructure. Within these, production incentives modelled on PLI schemes could be used to catalyse private investment into refining, separation and chemical conversion facilities. Amid growing concern over mineral security, recent export restrictions on rare earth elements by China have also exposed the vulnerability of India's automotive sector, with some firms already indicating potential production cuts. Rare earth magnets are essential to electric and internal combustion vehicles alike. To mitigate this risk, India must accelerate investments in independent supply chains, including targeted exploration, processing capacity and strategic partnerships. Given the demand intensity and India's current reserves, international engagement and friendshoring will be vital to the creation of a diversified and resilient supply chain. India has taken steps by joining the Mineral Security Partnership and initiating collaborations with Australia, Argentina and others. These partnerships signal a deeper alignment with global efforts to diversify supply chains away from China. India should leverage geopolitical platforms such as the Quad and G20 to secure further stable mineral trade relationships, promote joint ventures and facilitate best-practice sharing. Developing a critical mineral stockpiling framework will also be essential to buffer against supply disruptions and price volatility. These efforts must remain strategically aligned with broader foreign policy objectives. India must also build domestic self-sufficiency in critical minerals through more sustainable and circular approaches. Recycling offers a promising path to reduce import dependency. The recycling chain for batteries and electronics is fragmented and largely informal. Without investment in formal collection, dismantling and high-efficiency recovery, circularity will remain aspirational. India must also prioritise resource recovery by incentivising recyclers and by expanding formal infrastructure for waste collection. Sustainable mining practices and responsible sourcing of critical minerals are crucial. Several critical mineral reserves lie in tribal or ecologically sensitive areas where inadequate environmental, social and governance (ESG) compliance has led to delays, protests and legal challenges. India must adopt comprehensive ESG frameworks in mining, incorporating community trust-building and third-party audit mechanisms. Strengthening community participation through local benefit-sharing and decision-making will be key to fostering enduring community trust and support for mining activities. Policymaking must be informed by rigorous, sector-specific assessments of future demand, supply and technological developments. India should periodically reassess its critical mineral list and adjust sourcing strategies in line with domestic and global shifts. The contest for critical minerals will shape the contours of future economic resilience and technological sovereignty. India has the market scale, industrial ambition and diplomatic leverage to lead. It must now ensure timely execution, sustained institutional support and a clear commitment to self-reliance, sustainability and global alignment. Kant is former G20 sherpa of India and former CEO of Niti Aayog and Chhina is a policy specialist — climate and energy
Time of India
2 days ago
- Business
- Time of India
India holds 8.52 million tonnes of rare earth oxide resources; no rare earth imports in last 10 years: Govt
New Delhi: India has identified a total of 8.52 million tonnes (MT) of in-situ Rare Earth Elements Oxide (REO) resources across multiple states, as the government pushes ahead with efforts to secure supply chains for critical minerals essential to electric vehicles, renewable energy, and defence applications. According to data presented in the Lok Sabha by Union Minister Dr. Jitendra Singh, the Atomic Minerals Directorate for Exploration and Research (AMD) has estimated approximately 7.23 MT of REO within 13.15 MT of monazite deposits found in coastal beach, teri/red sand, and inland alluvial zones across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra. Additionally, hard rock terrains in Gujarat and Rajasthan account for 1.29 MT of REO resources. Separately, the Geological Survey of India (GSI) has reported augmentation of 482.6 MT of REE ore across 34 exploration projects using various cut-off grades. India has recorded no imports of rare earth minerals over the last 10 years, while exports have totaled 18 tonnes during the same period, the government informed the House. To meet rising demand and reduce dependence on external sources, the Union Cabinet on January 29, 2025, approved the launch of the National Critical Mineral Mission (NCMM) with an outlay of ₹16,300 crore. The mission is expected to attract investments of ₹18,000 crore by public sector undertakings and will be implemented over seven years until FY 2030-31. It aims to strengthen India's end-to-end critical minerals value chain, from exploration and mining to processing, recycling and reuse. As part of the NCMM, ₹500 crore has been allocated for establishing mineral processing parks, ₹1,500 crore for incentivising mineral recycling from secondary sources, and ₹100 crore for pilot recovery projects. The mission will also support R&D institutions, startups, and MSMEs engaged in innovation across the critical minerals sector. In FY 2024–25, GSI has taken up 195 mineral exploration projects focused on critical and strategic minerals. For FY 2025–26, 227 such projects have been lined up. The National Mineral Exploration Trust (NMET) has funded 195 projects so far. Additionally, 33 private exploration agencies are undertaking NMET-funded work. To expand access to critical minerals abroad, the Ministry of Mines established Khanij Bidesh India Limited (KABIL), a joint venture which has acquired 15,703 hectares for lithium mining in Argentina's Catamarca province. KABIL is also in regular discussions with Australia's Critical Minerals Office and has signed bilateral agreements with governments of Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, and Côte d'Ivoire. The Ministry is also actively participating in global mineral partnerships through platforms like the Minerals Security Partnership (MSP), the Indo-Pacific Economic Framework (IPEF), and the India-UK Technology and Security Initiative. To further secure supply chains, the Mines and Minerals (Development and Regulation) Act, 1957 was amended in August 2023. The amendments removed six minerals from the list of atomic minerals and created a separate list of 24 critical and strategic minerals. The Centre has since been empowered to auction blocks and exploration licenses for these. A first tranche of offshore mineral auctions was launched in November 2024, covering 13 blocks including seven polymetallic nodule zones in the Andaman Sea. The first tranche of Exploration Licence (EL) auctions began in March 2025 for 13 blocks containing various critical minerals. To boost domestic processing capabilities, the government has eliminated customs duties on 25 minerals and reduced duties on two others. In Union Budget 2025–26, exemptions were extended to cobalt powder, lithium-ion battery waste, and 12 more critical minerals. The ministry of external affairs is engaged with foreign governments to address export restrictions on rare earth magnets and ensure uninterrupted supply chains for Indian industries.
Mint
5 days ago
- Automotive
- Mint
Local rare-earth production to take time, govt support needed for EV sector: Kinetic Green CEO
New Delhi [India], July 20 (ANI): Sulajja Firodia Motwani, Founder and CEO of Kinetic Green, has called for government intervention in the rare-earth materials issue, stating that while the Indian electric vehicle (EV) sector has managed to cope in the short term, it will face significant challenges ahead, as "it's not easy to change your product design and supply chain." Kinetic Green founder emphasised that it could take at least two to three years for the players in the automobile sector to localise the supply chain or adopt alternative technologies. "It will impact the industry if it's not solved because it's not easy to change your product design and supply chain. The EV sector is scrambling somehow to manage for the short run. But I think there has to be a government-to-government solution very soon in the medium term. Because it will take two to three years to try to localise the supply chain or change the technology altogether. So I think it's important that this is resolved," Sulajja Firodia Motwani said during the unveiling event of the company's electric Luxury Golf & Lifestyle Cart in partnership with Tonino Lamborghini SpA of Italy. She further added, "We faced a similar situation in COVID on semiconductors; if you remember, the government did follow through and resolve it. I'm hopeful that something will emerge from this." She added that until the issue is solved, the company is working on developing alternative technologies to mitigate the adverse impact of such restrictions arising from global geopolitical moves. "But in the meantime, we are finding alternatives so that the business can continue, but it's not ideal to do that, and also maybe not everybody can. So it (restrictions on rare-earth material by China) will impact the sector," she added. The central government has earmarked ₹ 1,345 crore to incentivise rare earth magnets production in India. For context, early this April, China announced a decision to implement export controls on certain rare earth-related items, pushing a supply shortage across the world, including India. Meanwhile, India is in touch with the Chinese side, seeking predictability in the supply of rare earth metals -- which had been put under the export controls regime by the Xi administration. China's overwhelming control of global rare earth processing - commanding over 90 per cent of the world's magnet production capacity - has created significant vulnerabilities for industries worldwide. These materials are critical across multiple sectors, including automobiles, home appliances, and clean energy China, there are only a few alternative suppliers of critical minerals. The Union Cabinet in January 2025 approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of ₹ 16,300 crore and an expected investment of ₹ 18,000 crore by Public Sector Undertakings. Recently, Union Minister for Coal and Mines G Kishan Reddy said the central government is actively encouraging private companies to mine and explore critical minerals overseas and bring them back into the country to serve the needs of the domestic industry. Speaking on the incentives to the industry, Motwani said, "The government has to continue supporting the adoption of EVs. Once we come to, today we are at about 7-8 per cent EV. Once we come to 25-30 per cent EV, then we'll have critical mass on supply chain, on scale, and on ecosystem. "We have begun well, but we are far from done. The government must continue supporting the adoption of electric vehicles," she added. She further noted the resistance from traditional internal combustion engine (ICE) players who have vested interests in maintaining the status quo. "There is a large counterforce from existing ICE manufacturers who naturally want to protect their investments and may not wish to see EVs succeed. However, it's encouraging that the government remains focused. Schemes like EMPS and the PM-eBus Sewa, lower GST rates, ecosystem support, and a strong Make-in-India push should continue to drive demand and adoption," Kinetic Green founder asserted.(ANI)
India Gazette
12-07-2025
- Business
- India Gazette
India to boost rare earth magnet production amid China's supply curbs: G Kishan Reddy
New Delhi [India], July 12 (ANI): Union Minister for Coal and Mines G Kishan Reddy on Saturday said that the Central Government has decided to begin the production of rare earth magnets in Hyderabad, as part of its broader push for self-reliance in critical technologies. Speaking to ANI, the minister said, 'The Central Government has decided to produce rare earth magnets in Hyderabad. Our Mining Ministry's NFTSM institute is working diligently, along with various industries, to manufacture the necessary machinery.' Reddy further added that the government will soon showcase its capabilities in manufacturing permanent magnets. 'Within the next 3-4 months, they will showcase their efforts in manufacturing permanent magnets. This initiative involves collaboration between the industry, mining, and other ministries, and has been discussed with Prime Minister Narendra Modi. The Central Government is working seriously towards the production of rare earth magnets,' he said. Highlighting India's shift in sourcing strategy, the minister noted that India was previously entirely dependent on China for rare-earth permanent magnets. 'We were 100 per cent dependent on China for rare earth permanent magnets, but recently China denied supplying to us,' Reddy said. China had announced in April 2024 that it would impose export controls on certain rare earth-related items, triggering a global supply shortage, including in India. In the light of rare earth magnet production, on Friday, Pankaj Mohindroo, Chairman of India Cellular and Electronics Association (ICEA), welcomed the central government initiatives to ramp up rare earth magnet production in India, particularly the incentives the latter is earmarking for. Finance Minister Nirmala Sitharaman announced the setting up of the Critical Mineral Mission in the Union Budget for 2024-25 on July 23, 2024. The Union Cabinet in January 2025 approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings. (ANI)
India Gazette
12-07-2025
- Business
- India Gazette
India to boost rare earth magnet production to counter China's supply curbs: G Kishan Reddy
New Delhi [India], July 12 (ANI): Union Minister for Coal and Mines G Kishan Reddy on Saturday said that the Central Government has decided to begin the production of rare earth magnets in Hyderabad, as part of its broader push for self-reliance in critical technologies. Speaking to ANI, the minister said, 'The Central Government has decided to produce rare earth magnets in Hyderabad. Our Mining Ministry's NFTSM institute is working diligently, along with various industries, to manufacture the necessary machinery.' Reddy further added that the government will soon showcase its capabilities in manufacturing permanent magnets. 'Within the next 3-4 months, they will showcase their efforts in manufacturing permanent magnets. This initiative involves collaboration between the industry, mining, and other ministries, and has been discussed with Prime Minister Narendra Modi. The Central Government is working seriously towards the production of rare earth magnets,' he said. Highlighting India's shift in sourcing strategy, the minister noted that India was previously entirely dependent on China for rare-earth permanent magnets. 'We were 100 per cent dependent on China for rare earth permanent magnets, but recently China denied supplying to us,' Reddy said. China had announced in April 2024 that it would impose export controls on certain rare earth-related items, triggering a global supply shortage, including in India. In the light of rare earth magnet production, on Friday, Pankaj Mohindroo, Chairman of India Cellular and Electronics Association (ICEA), welcomed the central government initiatives to ramp up rare earth magnet production in India, particularly the incentives the latter is earmarking for. Finance Minister Nirmala Sitharaman announced the setting up of the Critical Mineral Mission in the Union Budget for 2024-25 on July 23, 2024. The Union Cabinet in January 2025 approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings. (ANI)
