PM Shri Narendra Modi, approved the National Critical Mineral Mission in 2024,with an outlay of Rs. 34,300 crore over seven years, aiming to establish a resilient value chain for critical minerals essential for green technologies, clean energy, and defense applications.
India currently imports over 80% of its critical mineral requirements, with major suppliers being countries like China, Australia, and Argentina. As of 2024, India’s lithium reserves are negligible, prompting the government to invest in acquiring mining rights abroad and exploring new domestic reserves. In response to these challenges, the Union Cabinet of India, chaired by Prime Minister Shri Narendra Modi, approved the National Critical Mineral Mission (NCMM) in 2024, aiming to establish a resilient value chain for critical minerals essential for green technologies, clean energy, and defense applications. The mission, part of the Atmanirbhar Bharat initiative, is designed to ensure long-term energy security and economic growth by focusing on exploration, processing, and recycling of critical minerals. With an outlay of Rs. 34,300 crore over seven years, the government has allocated Rs. 16,300 crore, and expects an additional Rs. 18,000 crore investment from Public Sector Undertakings (PSUs) and other sources. This mission is pivotal for securing access to critical minerals, not only for advancing clean energy but also for enhancing India’s role in global supply chains for high-tech industries.
In recent years, the global shift toward green technologies and renewable energy has brought the critical importance of certain minerals into sharp focus. These minerals are essential for the production of high-tech gadgets, clean energy solutions, and even defense systems. India, recognizing the significance of these resources, has initiated the National Critical Mineral Mission (NCMM) to ensure a self-reliant and resilient value chain for these vital minerals. With an estimated outlay of Rs. 34,300 crore over the next seven years, the mission aims to strengthen India’s position in the global green technology ecosystem.
Green Technologies: A Paramount Importance for India
Green technology is of paramount importance for India as the country aims to balance its rapid industrial growth with environmental sustainability. India is the third-largest emitter of greenhouse gases globally, contributing about 7% of the world’s carbon dioxide emissions, with the energy sector accounting for nearly 70% of these emissions. As India continues to urbanize and industrialize, its energy demand is projected to rise by 50% by 2030.
To address these challenges, India has set ambitious targets under the Paris Agreement, aiming to achieve net-zero emissions by 2070 and to source 50% of its total energy from non-fossil fuel sources by 2030. The adoption of green technologies, such as solar energy, wind energy, and electric vehicles (EVs), is critical for meeting these targets. India has already made significant progress in renewable energy, becoming the 4th largest producer of solar power globally, with a capacity of over 45 GW as of 2024. The government’s push for electric vehicles is also gaining momentum, with a target of 30% EV penetration by 2030. By embracing green technologies, India not only aims to reduce its carbon footprint but also to create a sustainable future for its growing population, attract global investments, and enhance energy security.
A Vision for Self-Reliance in Critical Minerals
The National Critical Mineral Mission, approved by the Union Cabinet, is a strategic response to the increasing global demand for minerals required to power green technologies like solar panels, electric vehicles, wind turbines, and batteries for energy storage. These minerals include lithium, cobalt, nickel, rare earth elements, and others, which are not only fundamental to sustainable energy transitions but are also critical for India’s industrialization and defense capabilities.
As part of the Atmanirbhar Bharat initiative, this mission will help India reduce its dependency on imports of critical minerals, strengthening the nation’s supply chain resilience. These minerals are indispensable for the production of clean energy technologies, and securing their supply chain is paramount to India’s ambitions of achieving energy independence and leading the global transition to green energy.
The Key Objectives of the Mission
Comprehensive Value Chain Development: The NCMM aims to encompass every stage of the critical mineral lifecycle, from exploration to processing and recovery from end-of-life products. This holistic approach will ensure that India has a robust infrastructure to support the extraction, refining, and recycling of these essential minerals. The mission will also focus on establishing fast-track regulatory processes to accelerate critical mineral mining projects, making it easier for companies to invest in this sector.
Exploration and Acquisition of Global Assets: One of the major components of the mission is to encourage Indian PSUs (Public Sector Undertakings) and private companies to acquire critical mineral assets abroad. This global strategy will allow India to secure access to critical mineral resources in resource-rich countries, helping to meet domestic demands and enhance trade relations. For example, KABIL, a joint venture by the Ministry of Mines, has already secured approximately 15,703 hectares of land in the Catamarca province of Argentina for the exploration and mining of lithium, a mineral that is crucial for electric vehicle batteries.
Recycling and Recovery: With sustainability at the core of its vision, the NCMM also emphasizes the importance of recycling critical minerals from overburden and tailings, as well as from end-of-life products like batteries and electronics. The promotion of recycling technologies is essential not only for reducing environmental impact but also for improving the efficiency of resource utilization. The establishment of mineral processing parks will facilitate the recycling and processing of critical minerals domestically, ensuring a steady supply for various industries.
Research and Technological Innovation: To stay ahead in the race for green technology, the mission proposes the creation of Centres of Excellence for research in critical mineral technologies. These institutions will foster innovation, enabling India to develop advanced technologies for the extraction, processing, and recycling of critical minerals. By collaborating with global research institutions and private sector players, these centers will ensure that India remains at the forefront of the green revolution.
Financial Incentives and Infrastructure Development: The mission will provide financial incentives for critical mineral exploration and create a conducive environment for public and private sector investment in the mining and processing of these minerals. The government has already taken steps to boost the sector by eliminating customs duties on several critical minerals in the Union Budget for 2024-25, making these resources more affordable for Indian industries. This move will promote the establishment of mineral processing facilities within India and encourage innovation in this space.
Policy and Regulatory Support: A significant aspect of the NCMM is the creation of an efficient, transparent, and predictable policy and regulatory framework that will help expedite the exploration and mining process. The Mines and Minerals (Development and Regulation) Act, 1957, has already been amended in 2023 to enhance the exploration and mining of critical minerals. The Ministry of Mines, along with other relevant ministries and agencies, will work together to ensure that projects are fast-tracked and regulatory hurdles are minimized.
Strengthening India’s Green Technology Agenda
The push for critical minerals under the NCMM aligns closely with India’s broader agenda to become a global leader in clean energy and sustainable technologies. Green technologies like electric vehicles (EVs), solar power systems, and wind turbines rely heavily on minerals such as lithium, cobalt, and rare earth metals. By securing a reliable and sustainable supply of these resources, India can fast-track its energy transition and establish itself as a hub for green technology production.
India is already making strides in the clean energy sector, with ambitious goals for expanding its renewable energy capacity. However, without access to critical minerals, these efforts could be thwarted. The NCMM ensures that India is not only securing the supply of these minerals but also advancing the technologies needed to process and recycle them. This makes the mission an integral part of India’s push for self-reliance in the clean energy and green technology sectors.
A Strategic Imperative for India’s Future
The National Critical Mineral Mission represents a transformative shift in India’s approach to securing the raw materials necessary for the green technologies of tomorrow. With a comprehensive focus on exploration, mining, processing, and recycling, the mission lays the foundation for a sustainable and resilient supply chain that will support India’s clean energy ambitions for decades to come.
By strengthening its capabilities in the critical minerals sector, India is positioning itself as a global leader in the green technology revolution. This mission, with its emphasis on innovation, self-reliance, and global partnerships, will help India meet its climate goals while stimulating economic growth, enhancing national security, and promoting sustainable development. As India marches toward its goal of becoming a green superpower, the success of the National Critical Mineral Mission will be pivotal in securing a cleaner, greener, and more sustainable future for the nation and the world at large.
