Context:

The Indian government has recently approved the National Critical Mineral Mission (NCMM) with an investment of ₹16,300 crore, as part of a total outlay of ₹34,300 crore over seven years.

·        The mission aims to achieve self-reliance in critical minerals and accelerate India’s green energy transition.

Key objectives of the National Critical Mineral Mission:

• Promoting exploration and mining of critical minerals both within India and offshore.
• Reducing import dependence by securing domestic resources.
• Developing technologies for the processing of critical minerals.
• Encouraging recycling of these minerals from end-of-life products.
• Supporting public and private sector companies in acquiring critical mineral assets overseas.

About Critical minerals:

Critical minerals are elements, substances, or materials that are essential for the manufacturing of modern technologies. They are vital for the energy transition to clean energy technologies, such as electric vehicles, wind turbines, and solar panels. 

Significance of Critical Minerals:

• Critical Minerals such as copper, lithium, nickel, cobalt, and rare earth elements are vital for:
• Renewable Energy Infrastructure: Wind turbines, solar panels, and electrical networks.
• Electric Vehicles (EVs): Batteries and EV infrastructure.
• Electronics & High-Tech Industries: Smartphones, defense systems, and medical devices.
• With the world transitioning to green energy, the demand for these minerals is surging, making domestic availability crucial for India’s economic and technological growth.

Government Strategy and Implementation:

1.   Expedited Mining Approvals: A fast-track regulatory process for mining projects will be introduced to speed up operations.

2.   Stockpile Development: A strategic reserve of critical minerals will be created to safeguard the country’s supply chains.

3.   Policy Reforms: The Mines and Minerals (Development and Regulation) Act, 1957 was amended in 2023 to allow the auctioning of 24 strategic mineral blocks.

4.   Geological Survey of India (GSI) Exploration Projects: Over the past three years, 368 mineral exploration projects were initiated, with 227 more projects planned for 2025-26.

5.   Import Duty Waivers: Customs duties on critical minerals were removed in the FY25 budget to promote domestic processing and manufacturing.

Impact on India’s Energy Transition:

• The NCMM is expected to:
• Secure supply chains for India’s clean energy sector.
• Boost domestic manufacturing of EV batteries and renewable energy components.
• Strengthen India’s global position in critical minerals markets.
• Attract foreign and private investment in mining and processing.

Challenges and Way Forward:

• Geopolitical Risks: Acquiring mineral assets abroad could be affected by international political dynamics.
• Environmental Concerns: Balancing increased mining with environmental conservation remains a challenge.
• Investment Risks: Successful private sector participation requires solid policy backing.