Powering India’s Green Transition and Strategic Self-Reliance
Kartavya Desk Staff
Syllabus: Economy and Minerals
- •Source: YT*
Context: India has launched the National Critical Mineral Mission (2025) to build self-reliance in the exploration, mining, and processing of rare earth and critical minerals that are vital for clean energy, electronics, and defence technologies.
About Powering India’s Green Transition and Strategic Self-Reliance:
Importance of Rare Earths and Critical Minerals:
• Backbone of Modern Technology: Power electronics, EVs, wind turbines, solar panels, and digital infrastructure.
• Enabler of Green Transition: Essential for achieving global climate targets and net-zero commitments.
• Strategic Resource: Critical for national defence, aerospace, and advanced communication systems.
• Economic Driver: Integral to the clean-tech value chain, boosting innovation and manufacturing competitiveness.
Difference between Rare Earth Elements (REEs) and Critical Minerals
Aspect | Rare Earth Elements (REEs) | Critical Minerals
Definition | 17 metallic elements with similar properties, often found together | Broader group defined by economic importance & supply risk
Use | Magnets, lasers, EV motors, wind turbines | EV batteries, solar cells, semiconductors, defence equipment
Scope | Subset of critical minerals | Includes REEs + others like lithium, cobalt, nickel, graphite
Supply Risk | Highly concentrated (mostly China) | Varies across elements but globally vulnerable
India’s Context and Climate Goals:
• India targets a 45% reduction in emissions intensity by 2030 and aims for net-zero emissions by 2070, aligning with global climate goals.
• To achieve this, India needs secure access to critical minerals for renewable energy, battery storage, and EV expansion.
• Although India ranks 5th globally in rare earth reserves, it lacks large-scale refining, magnet, and downstream processing capacity.
• The National Critical Mineral Mission (2025) ensures supply chain security, industrial competitiveness, and strategic self-reliance.
Applications:
• Renewable Energy: Minerals like silicon, indium, and gallium power solar panels, while neodymium and dysprosium enable high-efficiency wind turbines.
• Electric Vehicles & Storage: Lithium, cobalt, and nickel are essential for lithium-ion batteries driving EVs and grid storage systems.
• Electronics: Copper, tungsten, and tin are vital for semiconductors, printed circuits, and microprocessors in high-tech manufacturing.
• Defence & Aerospace: Titanium and rare earth magnets are used in jet engines, missiles, and satellite communication systems.
• Medical Equipment: Critical minerals form components in MRI scanners, pacemakers, and diagnostic imaging technologies.
Challenges Associated:
• High Import Dependence: Over 60% of the world’s refining capacity lies in China, posing geopolitical and supply risks.
• Technology Gaps: India lacks advanced refining, metallisation, and magnet-making infrastructure to process critical minerals efficiently.
• Environmental Concerns: Mining and refining can cause soil and water pollution, demanding strict ecological safeguards.
• Regulatory Delays: Slow clearances and fragmented governance across agencies hinder timely project execution.
• Funding & Skill Deficit: Capital-heavy exploration and limited technical expertise slow innovation and industrial scalability.
Initiatives Taken:
• National Critical Mineral Mission (2025): Aims for end-to-end value creation—exploration, mining, processing, and recycling.
• MMDR Act Amendment (2023): Added 24 critical minerals for centralised auction and improved transparency in allocation.
• KABIL JV: Secured lithium assets in Argentina and partnered with Australia for strategic critical mineral collaborations.
• Customs Duty Exemption (2025): Reduces input costs for domestic processing and encourages industrial-scale refining.
• Processing Parks & Recycling: Promotes circular economy models and value addition across the mineral supply chain.
Way Ahead:
• Develop Domestic Value Chain: Build capacity from exploration to magnet and battery component manufacturing.
• Foster R&D & Startups: Encourage innovation in refining, separation, and recycling technologies through targeted funding.
• Diversify Imports: Establish strategic partnerships with resource-rich nations to reduce overdependence on China.
• Environmental Safeguards: Enforce sustainable mining practices and strengthen recovery from secondary sources.
• Policy Integration: Align mineral strategy with Make in India, Green Hydrogen Mission, and energy transition policies.
Conclusion:
Critical minerals are the foundation of India’s green and digital economy, linking climate goals with strategic autonomy. The mission represents a shift from dependence to resilience, ensuring long-term sustainability and technological leadership. By investing in exploration, innovation, and circularity, India can become a global hub for green-critical mineral value chains.