In a significant move aimed at enhancing self-sufficiency and ensuring resource sustainability, the Centre is planning to come up with a comprehensive list of critical minerals and introduce a draft policy to regulate their extraction, processing, and utilisation.
A comprehensive critical minerals list and a draft policy are likely to be announced this week as inter-ministerial and industry discussions on the plan have concluded, people aware of the development told Business Standard.
“The plan is to release the critical minerals list on June 28,” said two officials who have worked with the government on the plan.
Experts opine, it is a strategic initiative, reaffirming India's commitment to strengthen its mineral sector and reduce dependence on imports which often leads to supply chain vulnerabilities and price volatility.
Moreover, the country also did not have a specific list of critical minerals, which was becoming a deterrent in prioritising the country’s critical mineral needs.
Critical minerals such as copper, lithium, nickel, cobalt, and rare earth elements (REEs) are key to clean energy technologies as they are needed for the production of wind turbines and solar photovoltaic cells for electric vehicle (EV) batteries and electricity magnets — all witnessing phenomenal growth in demand across the globe. China currently dominates both the global concentration of mineral deposits and the processing of critical minerals.
According to a government source, the critical minerals list is likely to have more than 40 minerals. Though India did not have an official list till date, a report by Council on Energy, Environment and Water (CEEW) in its research report ‘Critical Non-Fuel Mineral Resources for India’s Manufacturing Sector: A Vision for 2030’ considered non-fuel critical minerals to be 49, including rare earth minerals.
The Ministry of Mines, in collaboration with experts from the geology and mining sectors, has compiled an exhaustive list of critical minerals based on their economic importance and scarcity.
These minerals possess significant national security implications and are essential for driving sustainable economic growth.
The critical minerals list and policy will serve as a guiding framework for India's mineral sector, enabling efficient resource management, reducing import dependence, and fostering economic growth.
The study reveals that the out of these, supply risk would be 100 per cent for 24 minerals and above 50 per cent for 41 minerals by 2030. Antimony, gallium, graphite, nickel, niobium, strontium, lithium, nickel, cobalt, molybdenum, and rare earth metals are some of the critical minerals.
Declaration of critical minerals is a dynamic process, and it can evolve over time as new technologies, market dynamics, and geopolitical considerations emerge. Different countries may have their own unique lists of critical minerals based on their specific circumstances and priorities. The US has declared 50 minerals critical in light of their role in national security or economic development. The UK considers 18 minerals critical and Canada 31.
By strategically developing and managing its own mineral resources, India aims to ensure long-term security, mitigate risks, and bolster its industrial competitiveness.