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India Plans Strategic Critical Mineral Reserves to Shield Key Industries
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Firstpost•12-10-2026, 12:44
India Plans Strategic Critical Mineral Reserves to Shield Key Industries
- •India is preparing to establish a strategic reserve of critical minerals to protect industries like electric vehicles and defence from global supply disruptions and price volatility.
- •The new policy, expected to be finalized within a month according to Mines Secretary V L Kantha Rao, aims to secure access to essential materials vulnerable to international supply chain issues.
- •Critical minerals such as lithium, rare earths, cobalt, and nickel are vital for India's expanding electric mobility, renewable energy, electronics, and manufacturing sectors.
- •In addition to stockpiling, India's broader strategy includes domestic exploration, overseas mineral acquisitions, and building local processing and recycling capabilities.
- •While strategic reserves offer a buffer against sudden shortages, long-term supply security will also rely on reducing structural import dependence and developing domestic processing capacity.
Key Questions Answered
India is preparing to build a strategic reserve of critical minerals to mitigate global supply disruptions, lower import dependence, and manage price volatility. This policy aims to safeguard key domestic sectors like electric vehicles, battery manufacturing, clean energy, and defence equipment.
According to Mines Secretary V L Kantha Rao, the proposed stockpiling policy is anticipated to be finalized within a month.
Approved in January 2025, the National Critical Mineral Mission seeks to strengthen India's critical mineral value chain by managing exploration, mining, beneficiation, processing, and recovery from secondary sources. Additionally, the mission supports the acquisition of vital mineral assets overseas.
