Cabinet nod to critical minerals mission in green energy boost
These 24 minerals include Beryl, Cobalt, Cadmium, Lithium, Graphite, Nickel, and Selenium. Lithium, for instance, is required for EV batteries.
The union cabinet chaired by PM, Narendra Modi has approved the launch of National Critical Mineral Mission to establish an effective framework to make India self-reliant in critical minerals— key for the renewable energy sector, particularly for solar panels, wind turbines, batteries and electric vehicles.
The mission, with an expenditure of ₹16,300 crore and expected investment of ₹18,000 crore by state-owned companies and private investors, and line with the Critical Mineral Mission announced in Union Budget for 2024-25 on July 23, 2024 was cleared by the cabinet on Wednesday.
The 24 critical minerals, covered under the mission are also important for other industries such as electronics, telecommunications, defence, aerospace, agriculture, and transport , Ashwini Vaishnaw, Union minister of railways, information & broadcasting and electronics & IT who briefed media about the cabinet decisions said. He added that some of these are critical for energy transition and making India a low carbon economy, Vaishnaw added.
These 24 minerals include Beryl, Cobalt, Cadmium, Lithium, Graphite, Nickel, and Selenium. Lithium, for instance, is required for EV batteries.
The National Critical Mineral Mission will encompass all stages of the value chain, including mineral exploration, mining, beneficiation (or improving the quality of the ore), processing, and recovery from end-of-life products. The mission will intensify the exploration of critical minerals within the country and in its offshore areas.
“It aims to create a fast track regulatory approval process for critical mineral mining projects. Additionally, the mission will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings,” according to a note on the cabinet decision.
The mission aims to encourage Indian state owned companies and the private sector to acquire critical mineral assets abroad and enhance trade with resource-rich countries. It also proposes development of stockpile of critical minerals within the country. The mission includes provisions for setting up of mineral processing parks and supporting the recycling of critical minerals. It will also promote research in critical mineral technologies and proposes setting up Centre of Excellence on Critical Minerals.
The Mines and Minerals (Development and Regulation) Act, 1957, was amended in 2023 to increase exploration and mining of critical minerals. Consequently, the mines ministry auctioned 24 blocks of strategic minerals. Further, Geological Survey of India (GSI) has undertaken 368 exploration projects for critical minerals over the past three years, with 195 projects currently underway, the note added In FY 2025-26, GSI plans to take up 227 projects for various critical minerals.
KABIL, a joint venture of Ministry of Mines, has acquired an area of about 15703 Ha in the Catamarca province of Argentina, for exploration and mining of Lithium. The government has already eliminated customs duties on the majority of critical minerals in Union budget 2024-25.
“This will increase the availability of critical minerals in the country and will encourage the industry to set up processing facilities in India. These initiatives highlight India’s commitment to securing critical mineral supplies,” the note added.
HT reported on December 9 that the Union environment ministry has streamlined the approval process for surveys and exploratory drilling in forest areas which is expected to facilitate mineral exploration, according to a letter to principal secretaries and additional chief secretaries (forests) from all states and Union territories (UTs).
“In the past two years, India has taken up multiple initiatives and regulatory changes to strengthen the critical mineral ecosystem in the country. The approval of the Critical Mineral Mission with an outlay of INR 34,000 crores can help India develop the competitive capabilities in segments such as processing, recycling, foreign acquisition of critical mineral resources. CEEW’s recent analysis suggests that India has potential competitive advantage in many clean energy component manufacturing which are important for the success of various Production Linked Incentive Schemes. Such components often require high grades of critical minerals, and the announcement of the Critical Mineral Mission can provide the much needed boost to the ancillary industries which will help increase the indigestion levels of the final products,” said Rishabh Jain, Senior Programme Lead, Council on Energy, Environment and Water (CEEW).