Rare Earth Exchanges

India’s National Critical Mineral Mission – A Strategic Move Toward Resource Security

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Highlights

  • India’s ₹16,300 crore initiative aims to secure strategic mineral resources critical for high-tech industries.
  • The mission targets lithium, cobalt, nickel, and rare earth elements to reduce import dependence and strengthen domestic supply chains.
  • Strategic goals include expanding mineral exploration, developing public-private partnerships, and positioning India as a key player in semiconductor and AI technologies.

India has launched the National Critical Mineral Mission (NCMM), a major initiative aimed at securing the country’s access to essential raw materials for semiconductors, clean energy, defense, and artificial intelligence (AI). With a ₹16,300 crore ($1.96 billion) investment and an expected ₹18,000 crore ($2.1 billion) infusion from public and private sectors, the program is designed to reduce reliance on imports of rare earth elements and other critical minerals. Prime Minister Narendra Modi hailed the initiative as a “major step towards self-reliance,” reinforcing India’s commitment to strengthening its industrial base and supply chains.

Shri Narendra Modi, the Prime Minister, declared the initiative on the government’s website (opens in a new tab). See his tweet (opens in a new tab).

The mission targets lithium, cobalt, nickel, gallium, germanium, and rare earth elements, which are vital to high-tech manufacturing. Its objectives include expanding mineral exploration, streamlining regulatory approvals, and providing financial incentives for mining and extraction. A key component is the development of a strategic stockpile, ensuring a stable supply in response to market fluctuations and geopolitical uncertainties. The Geological Survey of India has intensified exploration efforts, supported by recent amendments to the Mines and Minerals (Development and Regulation) Act, which have accelerated mining approvals and investment opportunities.

The NCMM also promotes public-private partnerships, encouraging Indian firms and public sector undertakings (PSUs) to acquire mineral assets abroad, reducing dependence on dominant suppliers like China. The initiative aligns with broader policy changes, including the removal of customs duties on critical minerals in the Union Budget 2024-25, aimed at incentivizing domestic processing and refining. Additionally, mineral block auctions have seen strong industry participation, signaling heightened interest in developing India’s mining sector.

The implications for semiconductors and AI are significant. Critical minerals like gallium and germanium are essential for transistors, diodes, and high-performance computing chips. By establishing a secure domestic supply, India seeks to stabilize production costs, enhance national security, and reduce reliance on China, which currently dominates the global critical minerals market. Strengthening domestic capabilities in semiconductor manufacturing will be crucial for India’s ambitions in AI development and next-generation technology production.

Despite its ambitious scope, the NCMM faces key challenges, including the need to scale domestic mining operations, develop advanced refining and processing technologies, and compete with global mineral giants, such as China, for access to critical resources.

Rare Earth Exchanges suggests, however, that if successfully implemented, the mission could reshape India’s industrial landscape, positioning the country as a major player in the global semiconductor and AI sectors while reinforcing economic and supply chain resilience.

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