The sector once dark of critical minerals has, over the years, to the central tasks in geopolitical negotiations. As nations worldwide accelerate their transition to clean energy and advanced technologies, the struggle to ensure lithium, cobalt, nickel, rare earth elements and graphite have intensified, remodeling international associations and commercial policies. India faces a significant challenge and an opportunity in this evolutionary landscape.
The country has to reassess its mineral security strategy, improve diplomatic scope and strengthen domestic capabilities. At present, India continues to depend largely on imports for energy transition minerals and their compounds, with a dependency of 100 percent import for lithium, cobalt and nickel minerals.
This contrasts markedly with the substantial national reserves of minerals in the country such as cobalt mineral (44.9 million tons), copper (163.9 million tons), graphite (211.6 million tons) and nickel (189 million tons).
Unless India ensures a stable supply of critical minerals through a combination of local diplomacy and production, it will be vulnerable to the global interruptions of the supply chain and the strategic maneuvers of the dominant players.
Geopolitical Chess Board
China, the main processor and world exporter of rare earth elements, has already demonstrated its willingness to take advantage of this domain by imposing export restrictions on seven critical elements of rare earths: samarium, gadolinio, terbio, disposition, lutetio, scandio and ittrium. These minerals are crucial for technologies ranging from military electronics to green energy equipment.
China’s movement underlines the fragility of global supply chains, partly amid commercial friction with the United States. Recent tariff climbs of the United States, which are directed to Chinese clean energy technologies, including an increase in proposition of 7.5 percent to 25 percent in lithium -ion batteries in January 2026, further encourages the diversification of AFO supplies and export centers such as India.
Both developed and development economies are making movements to become the alternative of China. Ukraine is leveraging its underutilized critical mineral reserves to attract US associations. Pakistan has become a potential geography for the investment of the United States in mineral resources.
In the United Kingdom, an evaluation of the supply chain has caused calls to an urgent review or a national critical mineral policy, underlining how even developed economies remain exposed to vulnerabilities.
The European Union (EU) has dramatically increased its commitment to Central Asia to search for alternative mineral supply chains. Brussels recently presented a global Gateway investment package of € 12 billion ($ 13,253 billion) to strengthen transport links and deepen cooperation in critical raw materials, digital connectivity, water and energy between the councilors of the EU and Central Asia.
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To guarantee energy security and industrial competitiveness, India has to strengthen its access to critical minerals, which are crucial raw materials for these products.
India movements
Collecting the urgency of ensuring critical minerals, India embarked on a proactive diplomatic and strategic scope. The high level commitment to nations rich in resources such as Chile, home of the world’s largest lithium reserves, points out a determined effort to ensure long -term access to a crucial mineral for energy storage and EV batteries. Public sector companies such as Coal India are exploring active investments in Chilean mining assets to ensure long -term access to lithium and copper.
India has also signed comprehension memoranda (MOU) with Australia, Argentina and the Democratic Republic of the Congo to promote collaboration in exploration, technology transfer and commercial investment in mineral supply chains. The country’s association with the USA. Under the critical mineral dialogue framework, which seeks to enable coinversion in mining and refining infrastructure, further reinforces its diplomatic efforts.
Diplomatic efforts alone are insufficient to guarantee mineral security. India must prioritize the strengthening of its domestic ecosystem.
The underdeveloped refining and processing capacity of the country is a key bottleneck even for minerals for which it has substantial reserves. For example, India lacks the facilities to refine the battery degree cobalt and depends completely on imports. A similar narrative is developed for copper and graphite, where cast iron restrictions and significant dependence persist.
This generalized dependence on imports underlines the imperative of India to rethink its mineral supply strategy. The launch of the Government of the National Mission of Critical Minerals (NCCM), with ₹ 16.3 billion rupees ($ 1.88 billion) for exploration and acquisitions abroad along with the investment of the public sector, is a welcome step to guarantee a constant local supply. The amendments to the law of mines and minerals (development and regulation) to optimize mining approvals and eliminate customs tasks in key minerals are also crucial measures to boost national processing and attract private participation.
Long -term measures
Accelerate domestic exploration and sustainable mining: India must prioritize geological mapping, allow private participation and maintain environmental safeguards to take advantage of their reserves of unleashed critical minerals and reduce import dependence.
Forge Global Associations for the transfer of refining and technology: collaborating with countries such as Japan, South Korea and Belgium can boost the refining capacity of India through joint companies, investments abroad and access to advanced technologies.
Diversify supply chains through strategic diplomacy: by expanding bilateral agreements and joining multilateral platforms such as the Quadilateral Security dialog (Quad) and the Mineral Security Association (MSP), India can ensure executive and stable access.
Expand incentives throughout the value chain: extend incentive schemes such as PLI to cover exploration, refining and manufacturing will attract, boost domestic capacity and support green industrial ambitions in India.
Promote circular economy and accumulation of strategic actions: investment in recycling infrastructure and the creation of national reserves will improve resources efficiency, reduce import dependence and isolate India from global supply shocks.
India’s aspirations to become a clean energy leader and a large digital economy hinge about its ability to ensure diversified, resistant and sustainable access to critical minerals. This is a fundamental national imperative that requires a concerted and strategic approach through diplomacy, industrial policy and technological innovation.
The writer is a specialist in energy, India, clean energy transition at the Institute of Energy Economics and Financial Analysis (Yeefa)
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Posted on April 23, 2025