India's Critical Minerals Push

Why lithium, cobalt, rare earths and other critical minerals matter for India's energy transition, and how India is trying to secure supplies at home and abroad.

Critical minerals such as lithium, cobalt, nickel, graphite and rare earth elements are needed for batteries, electric vehicles, solar panels, wind turbines and electronics.

India’s dependence

India relies heavily on imports of these minerals, often processed in China, which dominates refining of many critical minerals. In 2025, Chinese export restrictions on rare earth magnets disrupted Indian carmakers, highlighting the risk.

Domestic finds

In 2023, the Geological Survey of India reported lithium resources in Jammu and Kashmir, estimated at around 5.9 million tonnes of inferred resources, though commercial viability is uncertain.
India has large rare earth deposits in coastal sands, managed partly by IREL, a public sector company.

Policy steps

In 2023, India identified 30 critical minerals and amended laws to allow private exploration and auctions of some.
KABIL (Khanij Bidesh India Limited), set up in 2019, acquires mineral assets abroad, such as lithium blocks in Argentina.
The National Critical Mineral Mission, approved in January 2025, aims to boost exploration, processing and recycling.
A scheme to promote rare earth magnet manufacturing was announced in 2025.

Challenges

Exploration is limited and slow.
Processing technology and scale lag China.
Environmental concerns.

Partnerships

India joined the US-led Minerals Security Partnership in 2023 and works with Australia and others on supply chains.

The magnet shortage

In 2025, an Indian electric scooter maker faces delays when rare earth magnets from China become harder to import. The episode pushes the government and companies to invest in domestic magnet production.

Thinking finding lithium deposits means India will soon produce lithium

Deposits must be proven commercially viable, mined and processed, which takes years.

Key takeaways

Critical minerals are essential for batteries, EVs and clean energy.
India depends heavily on imports, often processed in China.
Lithium was found in J&K in 2023; KABIL acquires assets abroad.
The National Critical Mineral Mission (2025) aims to boost exploration and processing.