Why in the News?

The Union government has approved a mission which aims to reduce import dependence on critical minerals.

What’s in Today’s Article?

• National Critical Minerals Mission (Objectives, Features, Significance, Challenges, Way Forward, etc.)

National Critical Minerals Mission:

• The Indian government has approved the National Critical Minerals Mission (NCMM) with a total outlay of ₹34,300 crore over seven years.
• The mission aims to reduce import dependence on critical minerals, boost domestic exploration and processing, and accelerate India’s shift towards green energy technologies.
• Objectives and Key Features of the Mission:
  • Enhancing Domestic Exploration: A significant portion of the mission's funds will be allocated to intensifying mineral exploration across the country and in offshore areas.
  • Reducing Import Dependence: India heavily relies on imports for critical minerals like lithium, cobalt, nickel, and rare earth elements, essential for electric vehicles (EVs), battery manufacturing, and renewable energy technologies. This mission aims to curb that dependence.
  • Developing Processing and Recycling Capabilities: The mission will encourage investment in mineral processing parks, recycling technologies, and research on sustainable extraction methods.
  • Overseas Mineral Acquisitions: Public sector enterprises and private companies will be encouraged to acquire mineral assets abroad to ensure a steady supply of critical minerals.
  • Regulatory and Financial Support: The mission will streamline regulatory approvals and offer financial incentives for mineral exploration and development.

Significance of Critical Minerals:

• Critical minerals such as copper, lithium, nickel, cobalt, and rare earth elements are essential raw materials for modern industries. They are widely used in:
  • Renewable Energy Infrastructure: Wind turbines, solar panels, and electricity networks.
  • Electric Vehicles (EVs): Batteries and charging infrastructure.
  • Electronics & High-Tech Industries: Smartphones, defense equipment, and medical devices.
• As the world transitions to clean energy, demand for these minerals is soaring, making their domestic availability crucial for India’s long-term economic and technological security.

Government Strategy and Implementation:

• The Union Cabinet, chaired by PM Modi, has approved a government expenditure of ₹16,300 crore, while an additional ₹18,000 crore is expected to be invested by public sector undertakings (PSUs) and private companies.
• Key Implementation Measures:
  • Expedited Mining Approvals: The mission will establish a fast-track regulatory process for mineral mining projects.
  • Stockpile Development: A strategic stockpile of critical minerals will be built to safeguard India’s supply chains.
  • Policy Reforms: In 2023, the Mines and Minerals (Development and Regulation) Act, 1957 was amended, enabling the auction of 24 strategic mineral blocks.
  • Geological Survey of India (GSI) Exploration Projects: Over the past three years, the GSI has initiated 368 mineral exploration projects, with 227 projects planned for 2025-26.
  • Import Duty Waivers: The government has removed customs duties on several critical minerals in the FY25 budget to encourage domestic processing and manufacturing.

Impact on India’s Energy Transition:

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

Challenges & Way Forward:

• While the mission is a significant step forward, certain challenges remain:
  • Geopolitical Risks: Acquiring mineral assets overseas can be influenced by global political dynamics.
  • Environmental Concerns: Increased mining activities must balance ecological conservation.
    Investment Risks: Private sector participation needs strong policy support.
• To address these challenges, the government plans to collaborate with research institutions, industries, and international partners to ensure a sustainable and efficient implementation of the mission.

Conclusion:

• The National Critical Minerals Mission is a landmark initiative aimed at reducing import dependence, strengthening domestic mining capabilities, and securing India's clean energy future.
• By integrating exploration, processing, recycling, and international collaboration, India is taking a strategic step towards self-reliance and global leadership in critical mineral supply chains.