Critical and Strategic Minerals in India

India imports almost all the lithium and cobalt it needs today. That dependence worries planners chasing a 2070 net-zero target. So the government has spent four years tearing down the legal walls around mining these minerals, and in July 2026 it launched its eighth block auction.

MCQ Questions

IndEco0175

Critical Minerals: Building India’s Supply Chain

From a 30-mineral wishlist to auctioned blocks — how India is racing to secure lithium, cobalt, and rare earths.

Nov 2022

A panel identifies 30 critical minerals

A Ministry of Mines committee names the minerals India can least afford to run short of.

Aug 2023

MMDR Amendment Act opens the door

Six minerals leave the atomic list; private mining and Central auctions become possible.

Jan 2025

National Critical Mineral Mission approved

Cabinet backs a ₹34,300 crore, seven-year push for domestic and overseas sourcing.

Jul 2026

Eighth auction tranche launches

20 more mineral blocks go under the hammer, across nine States.

The pattern: India used to lock these minerals up under atomic-energy rules meant for a different era. Each step since 2023 has been about unlocking them faster — for private miners, for auctions, and for overseas partnerships.

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2023 MMDR Reform and India’s Critical Minerals List Need to Know

• Critical minerals are essential for the economy and national security. Their supply is concentrated in a few countries, which creates a risk of disruption.
• The Mines and Minerals (Development and Regulation) Amendment Act, 2023 removed six minerals from India’s atomic minerals list: lithium, beryllium, titanium, niobium, tantalum, and zirconium.
• This opened exploration and mining of these six minerals to the private sector, which was barred under the old atomic-minerals rules.
• The same 2023 Act empowered the Central Government to auction mineral concessions for critical minerals directly. States still receive the auction revenue.
• The Act also created a new Exploration Licence (EL). It lets private and foreign firms search for critical and deep-seated minerals, granted through auction.
• A Ministry of Mines committee, formed in November 2022, identified 30 minerals as critical for India. Of these, 24 are listed in Part D of the MMDR Act’s First Schedule.
• KABIL (Khanij Bidesh India Limited) is a joint venture of NALCO, Hindustan Copper, and MECL. It sources critical minerals from overseas, including lithium projects in Argentina, Australia, and Chile.
• India joined the Minerals Security Partnership (MSP), a US-led initiative on critical mineral supply chains, in June 2023, becoming its 14th member.
• Despite identifying 30 critical minerals, India is not resource-rich in most of them. It remains import-dependent for key ones like lithium and cobalt — part of why KABIL sources them overseas.

National Critical Mineral Mission and Key Institutions Good to Know

• The Union Cabinet approved the National Critical Mineral Mission (NCMM) on 29 January 2025. Its total outlay is ₹34,300 crore, spread over seven years, from 2024-25 to 2030-31.
• The Mission had first been announced in the Union Budget for 2024-25, presented on 23 July 2024.
• Under the NCMM, the Geological Survey of India (GSI) is tasked with 1,200 domestic exploration projects by 2030-31. It also targets 26 overseas mines through PSUs and 24 through private firms.
• IREL (India) Limited processes minerals like ilmenite, rutile, and zircon. It also runs a Rare Earth Extraction Plant in Odisha and a Refining Unit in Kerala.
• Ilmenite and rutile, the titanium-bearing minerals IREL processes, come from India’s coastal beach sand deposits — see IndEco0265 — India’s Beach Sand Minerals for how these placer deposits form and where India’s richest belts are.
• The committee that identified India’s 30 critical minerals also recommended a Centre of Excellence on Critical Minerals (CECM). Its job is to update the list roughly every three years.
• Rare Earth Elements (REEs) are a set of 17 metallic elements, the 15 lanthanides plus scandium and yttrium. China leads global REE mining by a huge margin. The United States is the world’s second-largest producer, not India.

Test Yourself

Please wait…

1. The Mines and Minerals (Development and Regulation) Amendment Act, 2023 removed six minerals from India’s atomic minerals list, opening them to private mining. Which of these was NOT one of the six?

Lithium

Titanium

Zirconium

Copper

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Why Critical Minerals Matter, and How They Differ from Deep-Sea Mining Great to Know

• India’s push is driven by its clean-energy targets. Lithium, cobalt, and rare earth elements go into EV batteries, solar cells, and wind turbine magnets. Demand for all three is set to rise sharply.
• The old atomic-minerals list dated from an era when lithium and titanium mattered mainly for nuclear and defence use. Their civilian uses, in batteries and electronics, now far outweigh that original purpose.
• Deep-seated minerals like gold, cobalt, and rare earths are harder and costlier to explore than surface minerals like sand or limestone. The new Exploration Licence exists to draw private and foreign expertise into that harder search.
• This effort is distinct from India’s Deep Ocean Mission. That mission explores polymetallic nodules on the seabed, not land-based mineral blocks, though both feed the same critical-minerals goal.

Current Affairs

• On 17 August 2026, the Ministry of Mines held a Roadshow on the 8th Tranche of Critical and Strategic Mineral Block Auctions, plus an NMEDT workshop, in Patna, Bihar. The 8th Tranche comprises 20 mineral blocks — 3 Mining Lease and 17 Composite Licence blocks — covering minerals including Graphite, Rare Earth Elements, Gallium, Titanium, and Potash. (Source: PIB)
• Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, on 13 August 2026. It amends the MMDR Act, 1957, to bring long-term fiscal stability to the major minerals sector. (Source: PIB)
• The amendment does not reduce States’ rights over land, minerals, or mineral taxes. About 90% of total mining taxes and payments already go to States, and that share continues unchanged. (Source: PIB)
• States currently levy about 14 different mining taxes and fees, including royalty, auction premium, dead rent, and DMF contributions. From FY2015-16 to FY2025-26, major mining States earned over ₹5 lakh crore this way, against just ₹82,000 crore for the Centre. (Source: PIB)
• The government says unchecked State-level tax hikes could push industry toward imports. India already imported ₹10,12,529 crore worth of minerals in FY2025-26. (Source: PIB)
• 15 July 2026: Reddy and Dubey formally launched the Eighth Tranche at the Curtain Raiser event for India Mining Week 2026, a new annual platform for the sector. Ministry of Mines Secretary Piyush Goyal called it a venue to showcase India’s mining potential and build global partnerships. (Source: PIB)
• 15 July 2026: Bidders can purchase tender documents until 14 September 2026, and must submit technical bids and price offers by 21 September 2026. The auction itself runs as an online, two-stage ascending forward process on the MSTC e-auction platform. (Source: PIB)
• 15 July 2026: Union Minister for Coal & Mines G. Kishan Reddy launched the Eighth Tranche of critical and strategic mineral block auctions, in New Delhi. Minister of State Satish Chandra Dubey also attended. (Source: PIB)
• On 29 July 2026, MHI extended bid deadlines for its global tender under the REPM scheme. REPM stands for Sintered Rare Earth Permanent Magnets. (Source: PIB)
• The Bid Due Date moved from 29 July to 12 August 2026. Technical Bids will now open on 13 August, instead of 30 July. (Source: PIB)
• The REPM scheme was approved by the Union Cabinet on 26 November 2025, with a financial outlay of ₹7,280 crore. (Source: PIB)
• It aims to build 6,000 Metric Tons Per Annum (MTPA) of integrated rare earth permanent magnet manufacturing capacity. This covers the full chain, from NdPr oxide, to finished magnets. (Source: PIB)
• These magnets power electric vehicles, wind turbines, high-end electronics, and aerospace and defence systems. The scheme aims to cut India’s import dependence in this sector. (Source: PIB)
• 15 July 2026: The Eighth Tranche offers 20 blocks across nine States, including 13 newly identified blocks and 7 offered for a second attempt. The portfolio includes molybdenum, graphite, rare earth elements, lithium, and gallium, among others. (Source: PIB)
• 15 July 2026: With seven earlier tranches complete, India has auctioned 56 of 88 critical and strategic mineral blocks taken up so far, a success rate above 63%. (Source: PIB)
• 15 July 2026: FY 2025-26 was a record year, with 212 mineral blocks auctioned overall, the highest in any year since auctions began. This included 22 critical and strategic mineral blocks. (Source: PIB)
• 15 July 2026: The Government also notified amendments to the Mineral (Auction) Rules, 2026. These ease timelines for upfront payments, and speed up refunds when an auction is annulled through no fault of the bidder. (Source: PIB)
• On 23 June 2026, the Seventh Tranche of critical mineral auctions took the total to 56 blocks. It was the first time Gujarat, Uttarakhand, and Telangana got critical mineral blocks auctioned. (Source: PIB)
• The Seventh Tranche covered graphite, rare earth elements, vanadium, titanium, glauconite, and rock phosphate. It followed a Notice Inviting Tender issued on 23 March 2026. (Source: PIB)
• The Ministry also completed its Second Tranche of Exploration Licence (EL) auctions. This took cumulative EL blocks auctioned to 11, extending the framework to Arunachal Pradesh, Uttar Pradesh, and Odisha for the first time. (Source: PIB)

Previous Year Question

Asked as: “Consider the following statements on the Minerals Security Partnership and critical minerals.” (UPSC CSP 2025, GS Paper I). View this question.