In response to escalating global competition for critical minerals, the Indian government has approved an investment of ₹16,300 crore (approximately $1.88 billion) to bolster its critical minerals sector. This strategic move aims to secure essential raw materials, including lithium, to support India's growing clean energy and technology industries.
The global demand for critical minerals is projected to surge, driven by the rapid expansion of clean energy technologies and the digital economy. The International Energy Agency (IEA) forecasts that by 2040, demand for these minerals could quadruple in a net-zero scenario, reaching nearly 40 million tonnes.
To mitigate supply chain vulnerabilities and reduce dependence on imports, India is implementing several strategic measures.
Domestic Exploration and Mining: The government is intensifying efforts to explore and extract critical minerals within its own territory. Notably, lithium reserves have been identified in Jammu and Kashmir, marking India's first known source of this essential metal.
International Partnerships: India is actively engaging in global alliances to secure access to critical minerals. The country has joined the U.S.-led Minerals Security Partnership (MSP), collaborating with resource-rich nations like the United States, Canada, and Australia to develop sustainable and diverse supply chains.
Strategic Investments: State-owned enterprises, such as Coal India, are pursuing critical mineral resources in countries like Argentina and Chile. These initiatives aim to secure supplies of essential minerals, including lithium, necessary for India's clean energy transition.
By investing in the critical minerals sector and fostering international collaborations, India seeks to enhance its economic resilience and technological capabilities. These efforts are crucial for supporting the nation's clean energy goals and reducing reliance on external sources for essential materials.
