{"id":128442,"date":"2026-10-11T10:05:58","date_gmt":"2026-10-11T04:35:58","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=128442"},"modified":"2026-10-11T12:18:34","modified_gmt":"2026-10-11T06:48:34","slug":"critical-mineral-stockpiling","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/critical-mineral-stockpiling\/","title":{"rendered":"India\u2019s Critical Mineral Stockpiling Policy &#8211; Key Developments and Challenges"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>Critical Mineral Stockpiling Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Ministry of Mines is planning to finalise a new policy on critical mineral stockpiling within a month to reduce import dependence and protect India against global supply chain disruptions.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>About Critical Minerals<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Critical minerals are raw materials that are essential for economic development, technological advancement and national security, but whose supply may be vulnerable to geopolitical tensions, concentration of production or supply chain disruptions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Important critical minerals include:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Lithium and cobalt:<\/b><span style=\"font-weight: 400;\"> Used in rechargeable batteries and electric vehicles.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Nickel:<\/b><span style=\"font-weight: 400;\"> Important for battery manufacturing and industrial applications.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Copper:<\/b><span style=\"font-weight: 400;\"> Essential for electricity networks, power infrastructure and renewable energy systems.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Rare earth elements:<\/b><span style=\"font-weight: 400;\"> Used in wind turbines, advanced electronics and other strategic technologies.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These minerals are increasingly important for the clean energy transition, electric mobility and the expansion of modern industrial infrastructure.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Need For Critical Mineral Stockpile<\/strong><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">A <\/span><b>strategic stockpile<\/b><span style=\"font-weight: 400;\"> is a reserve of essential materials maintained to ensure their availability during emergencies or periods of supply disruption.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">India faces several vulnerabilities in securing critical minerals:<\/span><\/li>\n<li><b>High import dependence<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">India has limited processing capacity and is entirely dependent on imports for most critical minerals, according to the report. This exposes domestic industries to international price fluctuations and supply disruptions.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Concentration of processing capacity<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">China controls approximately 90% of global critical mineral processing capacity. Such concentration creates strategic risks because disruptions or restrictions affecting a dominant supplier can have consequences for industries worldwide.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Geopolitical and trade risks<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Critical minerals can become instruments of economic leverage during trade tensions. Export restrictions or other supply interruptions could affect battery manufacturing, electric vehicles and renewable energy infrastructure.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Challenges in overseas acquisitions<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">India has attempted to secure mineral assets abroad through <\/span><b>Khanij Bidesh India Ltd<\/b><span style=\"font-weight: 400;\"> (KABIL). However, proposed investments in mineral extraction projects in countries such as Australia, Vietnam, Mali and Chile have faced delays or setbacks.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Progress has been reported in Argentina, where KABIL has acquired five lithium brine blocks in Catamarca province.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">A domestic stockpile could provide a buffer against these vulnerabilities while longer-term efforts to diversify mineral supplies and develop domestic processing capacity continue.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>About National Critical Minerals Mission (NCMM)<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The NCMM is a government initiative aimed at strengthening India&#8217;s critical mineral supply chains and improving the availability of minerals required for domestic industries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The mission proposes the development of a <\/span><b>National Critical Mineral Stockpile Programme<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Key features include:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Financial allocation:<\/b><span style=\"font-weight: 400;\"> \u20b9500 crore has been earmarked for the stockpiling initiative over the mission period of seven years, from 2024-25 to 2030-31.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Minimum mineral coverage:<\/b><span style=\"font-weight: 400;\"> The proposed national stockpile will include at least five critical minerals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Institutional participation:<\/b><span style=\"font-weight: 400;\"> A joint initiative involving Central Public Sector Undertakings (CPSUs) and private companies is proposed to establish and operate the stockpiling programme.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Primary objective:<\/b><span style=\"font-weight: 400;\"> To mitigate global supply chain risks and ensure the availability of essential minerals for domestic use during emergencies.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The proposed policy is expected to establish a more structured approach to building and maintaining these strategic reserves.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Boosting Domestic Critical Mineral Processing<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stockpiling can provide short-term protection, but long-term supply security also requires domestic processing capabilities and technological self-reliance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government has identified four states for promoting critical mineral processing plants.<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"size-full wp-image-128447\" src=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/current-affairs\/2026\/10\/11120924\/State-Proposed-area-of-focus.png\" alt=\"State &amp; Proposed area of focus\" width=\"660\" height=\"342\" \/><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The government intends to develop each processing park as a complete ecosystem for a particular mineral.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Such an approach could support the development of specialised industrial infrastructure, supply chains and related manufacturing activities.<\/span><\/li>\n<li aria-level=\"1\"><b>Indigenous technology development<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Access to processing technology remains a major challenge because countries with established capabilities may be reluctant to share their technological expertise.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The Ministry of Mines has therefore emphasised developing indigenous processing technologies or acquiring them wherever available. Nine Centres of Excellence have been identified for this purpose, with some reportedly making substantial progress.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The government has also been considering a separate scheme to promote lithium and nickel processing, both of which are important for the battery manufacturing ecosystem.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Challenges and the Way Forward<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India&#8217;s critical mineral strategy must address several interconnected challenges.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Limited processing capacity:<\/b><span style=\"font-weight: 400;\"> Establishing processing facilities requires specialised technology, infrastructure and skilled personnel.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Overseas project delays:<\/b><span style=\"font-weight: 400;\"> Diversifying mineral supplies through foreign acquisitions requires sustained investment and effective project execution.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Implementation of stockpiles:<\/b><span style=\"font-weight: 400;\"> The government must determine appropriate reserve levels, storage arrangements, replenishment mechanisms and procedures for releasing minerals during emergencies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Private-sector participation:<\/b><span style=\"font-weight: 400;\"> Clear institutional responsibilities and commercially viable arrangements will be necessary to sustain collaboration between public and private entities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Supply diversification:<\/b><span style=\"font-weight: 400;\"> India should pursue multiple international supply sources while developing domestic exploration, extraction and processing capabilities.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A balanced strategy combining strategic reserves, international partnerships, technological development and domestic industrial capacity can reduce vulnerability to external shocks.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/indianexpress.com\/article\/business\/india-critical-mineral-stockpiling-policy-supply-disruptions-10914596\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s critical mineral stockpiling policy, National Critical Minerals Mission, supply chain risks and domestic processing efforts.<\/p>\n","protected":false},"author":21,"featured_media":128449,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[10800,60,22,59],"class_list":["post-128442","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-mains-current-affairs","tag-critical-mineral-stockpiling","tag-mains-articles","tag-upsc-current-affairs","tag-upsc-mains-current-affairs","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/128442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=128442"}],"version-history":[{"count":3,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/128442\/revisions"}],"predecessor-version":[{"id":128448,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/128442\/revisions\/128448"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/128449"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=128442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=128442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=128442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}