Current Affairs
India's critical minerals push
Why critical minerals matter, the Minerals Security Partnership, the 2023 MMDR amendment, and the National Critical Mineral Mission that followed it.
Critical minerals, lithium, cobalt, nickel, rare earth elements, and similar inputs, are essential for batteries, electronics, semiconductors, and clean-energy technology (solar cells, wind turbines, EVs). They are called "critical" for two reasons at once: they are economically vital and their supply is geopolitically concentrated or vulnerable. A small number of countries (China above all) dominate global processing, even when the raw ore is mined elsewhere. India imports most of what it needs, so securing supply has become a top policy priority since 2023.
The list itself
A Ministry of Mines committee, constituted in November 2022, identified 30 minerals as critical for India in a 2023 report, a figure worth remembering as a standalone fact, since UPSC likes testing the exact number. Of these, 24 minerals were placed in Part D of the First Schedule of the MMDR Act, 1957, the legal step that actually lets the central government auction their mining licences (see below). The committee also recommended a Centre of Excellence on Critical Minerals (CECM) to keep the list updated and guide long-term planning, since which minerals count as "critical" shifts as technology changes.
The 2023 legal change: MMDR Amendment Act
The Mines and Minerals (Development and Regulation) Amendment Act, 2023 did two structurally important things:
- Removed six minerals (including lithium, niobium, titanium, and others) from the earlier "atomic minerals" list that only the central government could mine, opening them up to private and commercial exploration for the first time.
- Empowered the central government (not state governments) to auction mining licences specifically for critical and deep-seated minerals, since these deposits often need more capital and expertise than routine minor minerals.
By 2025, the Ministry of Mines had auctioned 24 blocks of strategic minerals under this new power.
National Critical Mineral Mission (2025)
Building on the 2023 legal change, the Cabinet approved the National Critical Mineral Mission (NCMM) in January 2025, with an outlay of ₹34,300 crore over seven years (FY 2024-25 to FY 2030-31). NCMM covers the entire value chain: exploration, mining, beneficiation, processing, and even recovery of critical minerals from end-of-life products (recycling old batteries and electronics, not just mining new ore), a recognition that recycling is itself a supply source, not just an environmental afterthought. Exploration activity has scaled up sharply alongside it: the Geological Survey of India (GSI) ran 368 critical- mineral exploration projects over three years, with around 195 ongoing in FY 2024-25 alone.
KABIL and overseas sourcing
KABIL (Khanij Bidesh India Ltd) is a joint venture of three Indian public-sector companies, set up specifically to secure critical minerals from overseas sources, since India's own reserves of some minerals (like lithium) are limited. Two agreements worth remembering: KABIL signed a lithium-exploration agreement with CAMYEN SE, an Argentine state-owned enterprise, in January 2024, and separately has an MoU with Australia's Critical Minerals Office for potential lithium and cobalt projects there. This overseas-sourcing strategy mirrors how China and other countries long ago locked in mineral supply chains abroad rather than relying only on domestic deposits.
Minerals Security Partnership (MSP)
A US-led group of countries working to build secure and diverse critical-mineral supply chains, as a counterweight to China's dominance in processing. India joined in 2023. It is a partnership, not a treaty organisation, a distinction that matters if a question tests India's formal memberships versus informal groupings.
Why it shows up in Prelims
This topic sits at the intersection of economy, environment, and international relations, so it can be framed many ways, a straight "which of the following are critical minerals" statement question, a policy-timeline question (MSP 2023 → MMDR Amendment 2023 → NCMM 2025), or an institutions question (KABIL vs GSI vs CECM, who does what).
Quick revision points
- 30 minerals identified as critical (2023 Ministry of Mines committee); 24 placed in Part D, Schedule I of the MMDR Act, 1957.
- MMDR Amendment Act, 2023: removed 6 minerals from the atomic-minerals list; let the central government auction critical-mineral blocks.
- National Critical Mineral Mission: approved January 2025, ₹34,300 crore, 7 years (FY25-FY31), covers exploration through recycling.
- KABIL = overseas sourcing arm (e.g. Argentina's CAMYEN SE deal, 2024).
- Minerals Security Partnership = US-led grouping, India joined 2023, a partnership, not a treaty body.
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