Government launches $4 billion hunt for critical minerals – The Times of India

NEW DELHI: India will spend Rs 34,300 crore or about $4 billion in the next six years under the national critical mineral mission to secure a long-term sustainable supply chain of natural resources crucial for transitioning to cleaner energy and achieving hi-tech dreams.
The mission envisages building a globally competitive and resilient end-to-end ecosystem to enhance availability of critical minerals. This will be achieved by raising domestic production through accelerated exploration, acquiring stake in 50 overseas mines by 2030-31, building facilities for intermediary processing and recycling, I&B minister Ashwini Vaishnaw said after the cabinet approved the mission on Wednesday.
The government’s intent of launching the mission was articulated in the 2024-25 budget, which also announced customs duty exemption for 25 and reduced levy on two critical minerals.
Vaishnaw said the government and its agencies will provide Rs 16,300 crore, while public sector entities such as Kabil, a joint venture of state-run miners for overseas acquisitions, will spend Rs 18,000 crore as part of their investment plans. The mission will provide a policy fillip to Kabil‘s quest for stakes in Australia, Chile and Argentina mines.
He said the private sector and startups will have a major role, especially in exploration and technology development. The mission includes developing a 10,000-strong skilled manpower and setting up three mineral processing parks.
India heavily depends on imports, which makes it vulnerable to disruption/volatility in global supply chain as production and processing of many critical minerals are geographically concentrated. China’s control over 70-80 per cent of global critical mineral resources makes the supply chain especially fragile for India. India’s lithium import bill alone stood at Rs 23,171 crore in 2022-23.
Critical minerals and rare earth elements (REE) have gained significance in view of India’s energy transition commitment and the thrust on semiconductor manufacturing as well as hi-tech development.
Lithium, Niobium and REEs have strategic significance due their applications in sectors ranging from mobiles, EVs and medical equipment to defence as well as space.