Critical minerals are minerals essential for clean energy technologies, defence systems, electronics, and advanced manufacturing that face high supply risk due to geographic concentration of production. India identified 30 critical minerals in 2023 through a committee headed by V. Vijayalakshmi (former Additional Secretary, Mines Ministry), placing this squarely on the national security and economic strategy radar. For UPSC, critical minerals sit at the intersection of GS-III (Science and Technology, Economy, Environment) and GS-II (International Relations), making them a high-probability topic for both Prelims and Mains.
The global reality is stark. China controls approximately 60% of rare earth mining and nearly 90% of rare earth processing. The Democratic Republic of Congo produces 70% of the world's cobalt. Australia dominates lithium mining. India, despite having significant geological potential, imports over 90% of its critical mineral requirements. That dependency is the problem this entire strategy aims to solve.
What Makes a Mineral "Critical" and India's List of 30
A mineral is classified as critical based on two parameters: economic importance (its role in key industries) and supply risk (concentration of global production, import dependency, lack of substitutes). The concept gained urgency after China restricted rare earth exports to Japan in 2010 over a territorial dispute, demonstrating how mineral supply chains can become geopolitical weapons.
India's Ministry of Mines constituted the committee in 2023 that identified 30 critical minerals using a three-stage assessment methodology. The list includes:
Energy transition minerals: Lithium, cobalt, nickel, manganese, graphite, silicon, gallium Defence and strategic minerals: Titanium, tungsten, vanadium, beryllium, niobium, tantalum Electronics and semiconductor minerals: Germanium, gallium, indium, selenium, tellurium Rare earth elements (REEs): Lanthanum, cerium, neodymium, praseodymium, dysprosium (grouped as "rare earths" in the list) Others: Antimony, bismuth, cadmium, chromium, hafnium, molybdenum, potash, strontium, tin, zirconium
Common student mistake: Assuming "rare earth elements" are actually rare. They are not. Cerium is as abundant as copper. The "rare" refers to the difficulty of finding them in concentrations economically viable for extraction, and the complex, polluting processing required. That processing bottleneck is why China dominates — it invested early and accepted the environmental costs.
The list was updated from an initial identification of 12 minerals in 2016 to 30 in 2023, reflecting the rapidly expanding role of minerals in the energy transition. For related context on India's energy strategy, see our guide on renewable energy in India.
India's Lithium Discovery in J&K and Domestic Reserves
The Geological Survey of India (GSI) announced in February 2023 the discovery of 5.9 million tonnes of inferred lithium resources in Reasi district, Jammu and Kashmir. This was India's first significant lithium find and generated considerable excitement.
However, context matters. "Inferred resources" is the lowest confidence category in geological classification (below "measured" and "indicated"). The actual extractable lithium could be substantially lower. The Reasi deposit is in the Salal-Haimana area, a mountainous region where mining poses significant logistical and environmental challenges. Commercial extraction is likely years away.
India's broader mineral reserves picture:
| Mineral | India's Reserves | Global Rank | Import Dependency | Key Domestic Sources |
|---|---|---|---|---|
| Lithium | 5.9 MT (inferred, J&K) | Significant but unproven | ~100% (currently) | Reasi (J&K), exploration in Rajasthan, Karnataka |
| Rare Earth Elements | ~6.9 MT (IREL estimates) | 5th globally | 90%+ for processed REEs | IREL mines in Kerala, Odisha (beach sands) |
| Titanium | 461 MT (ilmenite + rutile) | 2nd (ilmenite), 3rd (rutile) | Low for raw, high for processed | Kerala, Tamil Nadu, Odisha beach sands |
| Chromium | 344 MT | 3rd globally | Low | Sukinda Valley, Odisha (95% of India's chromite) |
| Graphite | 5.7 MT | Among top 10 | Moderate | Jharkhand, Odisha, Rajasthan, Tamil Nadu |
| Cobalt | Negligible | Not significant | ~100% | No primary deposits; by-product potential |
| Germanium | Very limited | Not significant | ~100% | No known deposits |
| Gallium | Recoverable from bauxite | By-product potential | ~100% | NALCO (from alumina refining) |
India has Indian Rare Earths Limited (IREL), a government entity mining monazite-bearing beach sands in Kerala and Odisha. But IREL produces only mineral concentrates. The separation and processing into individual rare earth oxides barely exists at commercial scale in India. That processing gap is the real vulnerability.
The connection between mineral resources and industrial strategy is direct — India's Make in India programme depends on securing these supply chains for manufacturing competitiveness.
Global Supply Chain Dominance: China's Grip on Critical Minerals
The numbers on China's dominance are not exaggerated. They are, if anything, understated in most analyses.
| Mineral/Process | China's Global Share | Second Largest | India's Share |
|---|---|---|---|
| REE mining | ~60% | Myanmar (~12%) | ~1-2% |
| REE processing | ~90% | Malaysia (~5%) | <1% |
| Lithium processing | ~65% | Chile (~10%) | Nil |
| Cobalt refining | ~70% | Finland (~10%) | Nil |
| Graphite (natural) | ~65% | Mozambique (~10%) | ~3% |
| Gallium production | ~98% | — | Nil |
| Germanium production | ~60% | — | Nil |
| Silicon (polysilicon for solar) | ~80% | — | Nil |
China achieved this dominance through decades of strategic investment starting in the 1990s. Deng Xiaoping famously said in 1992: "The Middle East has oil, China has rare earths." Beijing subsidised mining, accepted environmental damage, built processing capacity, and acquired overseas assets. When China restricted gallium and germanium exports in July 2023 (retaliating against US semiconductor export controls), it demonstrated the leverage this dominance provides.
Common student mistake: Focusing only on mining when discussing critical minerals. Mining is maybe 20% of the problem. Processing, refining, and manufacturing into components is where real dependency lies. India could mine lithium in J&K and still remain dependent if it cannot process lithium into battery-grade lithium carbonate or lithium hydroxide domestically.
India's Strategy: KABIL, Auctions, and International Partnerships
India's approach to critical mineral security operates on three tracks: domestic exploration and mining, overseas acquisition, and international partnerships.
KABIL (Khanij Bidesh India Ltd)
KABIL is a joint venture of NALCO (National Aluminium Company), HCL (Hindustan Copper Limited), and MECL (Mineral Exploration and Consultancy Limited), established in August 2019. Its mandate: identify, acquire, and develop overseas critical mineral assets for India.
KABIL has signed agreements with:
- Argentina for lithium exploration (five lithium brine blocks in Catamarca province)
- Australia for critical minerals collaboration
- Chile for lithium and cobalt projects
Progress has been slow compared to China's overseas acquisition pace. KABIL's budget and institutional capacity remain modest relative to the scale of the challenge.
Domestic Auction of Critical Mineral Blocks
The Mines and Minerals (Development and Regulation) Amendment Act, 2023 was a breakthrough. It removed lithium, beryllium, niobium, titanium, tantalum, and zirconium from the atomic minerals list (previously reserved for government entities under the Atomic Energy Act, 1962), opening them to private and foreign mining.
The first auction of critical mineral blocks took place in late 2023: 20 blocks were put up for auction covering lithium, REEs, nickel, cobalt, platinum group elements, and others across Jammu and Kashmir, Odisha, Tamil Nadu, Jharkhand, and Chhattisgarh. The response was mixed. Several blocks did not attract bids due to geological uncertainty and remote locations. A second round expanded the offerings.
International Partnerships
India has built a web of bilateral and multilateral partnerships:
| Partnership | Year | Focus |
|---|---|---|
| India-Australia CECA (Critical Minerals Investment Partnership) | 2023 | Joint projects in lithium, cobalt, rare earths. Australia committed AUD 5.8 million for a joint feasibility study |
| Quad Critical Minerals Partnership | 2022 | India, US, Japan, Australia. Supply chain mapping, joint R&D, diversification from China |
| India-US Critical and Emerging Technology Initiative (iCET) | 2023 | Semiconductor supply chain, critical minerals for electronics |
| India-EU Trade and Technology Council | 2023 | Strategic minerals supply chains, standards |
| India-Chile, India-Argentina bilateral agreements | 2022-23 | Lithium access in South America's "Lithium Triangle" |
| Mineral Security Partnership (MSP) | 2022 | US-led, 14 countries. India joined to diversify mineral supply chains |
India's push for FDI in India has a direct link here — attracting foreign investment into mineral processing is a stated priority under the 2023 amendments.
Applications: Why Critical Minerals Matter for Every Sector
The reason these minerals are "critical" is because modern technology cannot function without them:
Electric Vehicles (EVs): A single EV battery requires approximately 8 kg of lithium, 35 kg of nickel, 20 kg of manganese, and 14 kg of cobalt (depending on battery chemistry). India's target of 30% EV penetration by 2030 translates to massive mineral demand.
Solar Panels: Crystalline silicon panels need polysilicon (China controls 80%). Thin-film panels use cadmium telluride or gallium. India's target of 500 GW non-fossil fuel capacity by 2030 makes solar mineral security a priority. See our guide on minerals and energy resources for the full picture.
Wind Turbines: Permanent magnets in wind turbines use neodymium and dysprosium (rare earths). A single 3 MW direct-drive turbine contains about 600 kg of rare earth magnets.
Defence: Jet engines need titanium and tungsten. Night vision uses germanium lenses. Armour-piercing ammunition uses tungsten carbide. Missile guidance systems depend on rare earth magnets. India's defence modernisation is directly constrained by mineral access.
Semiconductors: Germanium, gallium, and silicon are the foundation materials. India's semiconductor mission (attracting fabs from Micron, Tata-PSMC) cannot succeed without assured supply of these minerals.
Nuclear Energy: Thorium and uranium are India's focus areas. Zirconium cladding in nuclear fuel rods is essential. India's three-stage nuclear programme depends on mastering the thorium fuel cycle, which connects to our guide on nuclear energy in India.
Space: ISRO missions rely on lightweight titanium alloys, germanium-based optics, and rare earth magnets in satellite systems.
Top 10 Critical Minerals: Reserves, Dependency, and Suppliers
| Mineral | Primary Application | India's Reserve Status | Import Dependency | Top Global Supplier |
|---|---|---|---|---|
| Lithium | EV batteries, energy storage | 5.9 MT inferred (J&K) | ~100% | Australia (47% of mining) |
| Cobalt | EV batteries, superalloys | Negligible | ~100% | DRC (70% of mining) |
| Rare Earth Elements | Magnets, electronics, defence | 6.9 MT (beach sands) | ~90% (processed) | China (60% mining, 90% processing) |
| Graphite | Batteries (anode), lubricants | 5.7 MT | ~40% | China (65%), Mozambique |
| Nickel | EV batteries, stainless steel | Limited | ~90% | Indonesia (49% of mining) |
| Germanium | Fibre optics, IR lenses, semiconductors | Very limited | ~100% | China (60%) |
| Gallium | Semiconductors, LEDs, solar cells | By-product potential | ~100% | China (98%) |
| Titanium | Aerospace, defence, pigments | Large (ilmenite) | Low (raw), high (sponge) | China, Japan (sponge) |
| Tungsten | Defence, cutting tools, filaments | Small (Rajasthan, Andhra Pradesh) | ~90% | China (84%) |
| Vanadium | Steel alloys, redox flow batteries | Small | ~80% | China (67%), South Africa |
UPSC Relevance: How Critical Minerals Are Tested
Prelims 2023 asked about the Mineral Security Partnership. Prelims 2024 tested knowledge of which minerals were removed from the atomic minerals list. Expect questions on KABIL's parent companies, India's critical minerals list, lithium discovery location, and China's dominance figures.
Mains GS-III: "Examine India's critical mineral strategy in the context of its clean energy transition goals" is a classic frame. Connect minerals to EVs, solar, semiconductors, and defence. Discuss domestic exploration + overseas acquisition + recycling as the three-pronged approach.
Mains GS-II: The Quad Critical Minerals Partnership, India-Australia CECA, and Mineral Security Partnership are testable under international relations and multilateral groupings.
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