India To Invest $1.88Bn In Critical Minerals Sector

India has approved Rs163bn ($1.88bn) to develop its critical minerals sector, aiming to secure raw materials such as lithium under the National Critical Mineral Mission (NCMM).

The investment was announced as part of the Atmanirbhar Bharat initiative recognising the vital role of critical minerals in high-tech industries, clean energy and defence.

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The Ministry of Mines earmarked this funding, with an additional Rs180bn expected from the public sector for critical minerals.

The NCMM will cover every stage of the value chain, from mineral exploration and mining to beneficiation, processing and the recovery of materials from end-of-life products.

“The mission will intensify the exploration of critical minerals within the country and in its offshore areas. It aims to create a fast-track regulatory approval process for critical mineral mining projects,” the government stated.

“Additionally, the mission will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings.”

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The NCMM seeks to incentivise Indian public sector undertakings and private sector companies to secure critical mineral assets overseas and strengthen trade with resource-rich nations. It also envisions the development of a strategic stockpile of critical minerals within the country.

Additionally, the mission includes plans to establish mineral processing parks and promote the recycling of critical minerals. It will support research into critical mineral technologies and aims to establish a Centre of Excellence on Critical Minerals.

In a related development, India is actively pursuing investments in Argentina’s mining, gas and oil sectors, with a particular emphasis on lithium to secure resources essential for its energy transition.

This initiative was highlighted by India’s Mining Secretary, V.L. Kantha Rao, during his visit to Buenos Aires, marking the first in-person meeting with Argentine officials since a preliminary agreement in 2022, reported Reuters.

The government has identified 30 critical minerals including lithium for its clean energy goals. The country currently relies on imports to satisfy increasing demand.

New Delhi has reached out to countries including Australia, Russia and the US for technical assistance in developing lithium processing technology.