India is in the advanced stages of framing a policy for processing critical minerals and has shortlisted two such minerals critical for electric vehicles, as it sharpens its strategy to secure supply chains amid surging global demand.
Experts say lithium and cobalt, essential for EV batteries, are at the centre of this push, given their role in improving performance, energy density and driving range, even as supply chains remain vulnerable to global trade dynamics.
Smelting Crunch
The policy push comes alongside a parallel effort to secure overseas assets. “Coal India, NTPC Mining along with Hindustan Copper are in talks with Codelco for four blocks in Chile,” Mines Secretary Piyush Goyal said — highlighting India’s expanding footprint in global mineral markets.
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The move is aimed at strengthening supply chain resilience through foreign mine acquisitions, a key pillar of India’s strategy to reduce dependence on imports and ensure long-term availability of raw materials.
“India’s quest for self-reliance in mineral value chains… will need overseas acquisitions to ensure ample availability,” Goyal said, underlining the need to secure resources beyond domestic reserves.
India has already taken steps in this direction, securing five lithium blocks in Argentina, with production expected to begin by 2029. It is also exploring investment opportunities in lithium projects across Brazil, Argentina and Australia, signalling a diversified sourcing strategy.
Multilateral Backing for Private Miners
To address financing risks associated with overseas investments, the government is engaging with multilateral institutions. “India is in talks with the World Bank and the Asian Development Bank (ADB) to offset geopolitical risk for private companies acquiring mines abroad,” Goyal said.
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The initiative is aimed at encouraging private sector participation by mitigating concerns over capital exposure in volatile geopolitical environments.
While upstream sourcing is gaining traction, challenges remain in downstream processing. Goyal noted that there is “no impact on copper production but smelting operations [are] under pressure”, linked to policy shifts in some countries, pointing to stress in refining and processing segments.
The developments come at a time when global competition for critical minerals is intensifying, driven by the clean energy transition and rapid EV adoption.
TOPICSRare Earth MineralsThis article was first uploaded on April eleven, twenty twenty-six, at fifty-six minutes past twelve in the am.