India is preparing to launch a national initiative aimed at the critical and strategic minerals sector, as it strives to advance its green energy transition and enhance its electric vehicle manufacturing capabilities. After laying the groundwork throughout 2024, the country is set to witness a remarkable year for its mineral and mining industries in 2025. As global efforts intensify to secure essential minerals necessary for renewable energy and cutting-edge technologies, India is ready to take a leading role with the scheduled launch of its highly anticipated Critical Mineral Mission in 2025.
This mission represents a bold and cooperative endeavour that will bring together various ministries, industries, research and development institutions, and international think tanks to create a united vision for securing a sustainable supply of the critical minerals that will drive future innovations.
India is planning a series of prominent roadshows internationally, alongside efforts to acquire critical mineral assets in Australia to attract foreign investment and establish its presence on the international mining stage. Mines Secretary V L Kantha Rao emphasised the collaborative nature of the mission, stating, “In 2025 we will launch the Critical Mineral Mission, which will involve six to seven ministries, numerous industries, research and development institutions, and think tanks working in unison.”
Rao elaborated further, explaining, “Our goal is to advance the Mission with a comprehensive approach that engages the industry and all stakeholders, including R&D and foreign acquisitions.” Countries worldwide are competing to secure resources like lithium and cobalt through intricate policies and partnerships, recognising that critical minerals are the essential components of the 21st-century economy.
Rao asserted, “2025 will also be significant for supporting the successful bidders of critical minerals as they embark on their projects. It is crucial that we assist them and streamline the process of initiating mining operations in critical mineral blocks.” To date, 24 strategic mineral blocks have been auctioned across four rounds.
According to World Bank projections, by 2050, the demand for minerals such as lithium and cobalt is expected to surge by almost 500% to fulfil the rising needs of clean energy technologies. Meanwhile, the International Energy Agency estimates that the demand for these minerals will increase by at least 30 times by 2040 due to the growing adoption of electric vehicles and battery storage solutions.
Moreover, critical minerals are indispensable for the semiconductor industry. With India’s ambition to emerge as a global hub for semiconductor manufacturing—a sector predicted to reach a trillion-dollar valuation by 2030—the urgency for a reliable supply of critical minerals intensifies. Semiconductors, which are the tiny chips powering everything from smartphones to electric vehicles, rely heavily on materials like silicon, cobalt, and rare earth elements, alongside essential technology access. Without a steady supply of these minerals, India’s aspirations of gaining a significant foothold in the global chip industry remain at risk.
In addition to auctioning domestic critical mineral assets, India has established a joint venture named Khanij Bidesh India Ltd (KABIL). This entity aims to identify, explore, acquire, develop, mine, process, procure, and sell strategic minerals overseas, ensuring a resilient supply for the Indian domestic industry. KABIL was founded with equity contributions from three Central Public Sector Enterprises: National Aluminium Company Ltd, Hindustan Copper Ltd, and Mineral Exploration and Consultancy Ltd. Currently, it is exploring opportunities for acquiring overseas critical mineral assets such as lithium and cobalt, focusing on projects in countries like Australia.
Rao mentioned that India is actively pursuing the acquisition of critical mineral assets in Australia. To enhance the nation’s mineral resources, amid anticipated significant growth in the demand for critical minerals—particularly lithium—the government initiated its first auction for offshore mineral exploration blocks, with 13 mines available for bidding.
Rao explained that in the coming year, significant efforts will be directed towards offshore mining through various roadshows, stating, “We expect new bidders for offshore mining. There is a necessity for comprehensive roadshows. Feedback suggests a need to connect with various parties, including companies from Norway and researchers. We must engage in more roadshows to ensure the success of this auction.”
The significance of critical minerals is expanding due to their applications in everything from electronic chips to solar panels. India is uniquely positioned, boasting rare earth deposits that surpass those found in Australia and Canada. Fostering sustainable and high-tech exploration will be vital for unlocking the full potential of these resources, and the private sector can play a crucial role in providing expertise and scaling efforts.
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Mining conglomerate Vedanta Ltd’s Chairman Anil Agarwal remarked that the significance of critical minerals is increasing because they play a vital role in both electronic chips and solar panels. “We see this as an opportunity. India possesses larger rare earth deposits than Australia and Canada. Promoting sustainable and advanced exploration will be essential for tapping into this potential, and the private sector can contribute significantly through its expertise and scale,” he stated.
Critical minerals will play a crucial role in India’s economic development, job creation, and reducing reliance on imports. Agarwal noted, “In 2025, the industry, government, and other stakeholders will collaborate to foster the growth of natural resources and mining—a cornerstone of sustained economic progress and our global leadership.”
Arun Misra, CEO of Hindustan Zinc, an integrated producer of zinc, lead, and silver, highlighted that the Indian metals and mining industry is poised for substantial growth by 2025, driven by rapid infrastructure development and evolving regulatory environments that streamline operations. As India moves towards becoming a five trillion-dollar economy, the metals and mining sectors will need to align international standards with domestic demand while also addressing global requirements.
“The transition towards clean energy has amplified the need for critical minerals. India is pursuing a similar path, being positioned to become the third-largest economy in the world. As the nation centres its efforts on critical minerals essential for energy transition, metals like zinc, silver, and cobalt are becoming increasingly critical. Among these, zinc will play a key role in supporting the steel, infrastructure, automotive, and emerging sectors,” he stated.
Vedanta Aluminium Chief Operating Officer Sunil Gupta expressed optimism for 2025, stating, “This year holds significant potential as we adopt a positive policy environment that nurtures innovation and value-added growth, allowing us to address the evolving demands of a sustainable world.” He noted that aluminium is critical for green technologies, including electric mobility, renewable energy, and advanced manufacturing, which have seen substantial global demand growth. “Our domestic industry, backed by a solid resource base and innovative capacities, is well-positioned to satisfy this rising global demand, enhance exports, and become a reliable alternative to traditional supplier nations such as China,” he added.
