National Critical Mineral Mission (NCMM)

Overview

The National Critical Mineral Mission (NCMM) was approved by the Union Cabinet on 29 January 2025 with a total financial outlay of ₹34,300 crore over seven years (FY 2024-25 to FY 2030-31). Of this, ₹16,300 crore comes from the government exchequer and an additional ₹18,000 crore is expected as investment from Public Sector Undertakings (PSUs). The mission aims to build a resilient end-to-end value chain for critical minerals vital to green technologies, defence, electronics, and India’s strategic self-reliance.

The mission covers all stages of the critical mineral value chain — from exploration and mining to beneficiation, processing, recycling, and recovery from end-of-life products. India has identified 30 critical minerals (with 24 listed under Part D of Schedule I of the MMDR Act, 1957), including lithium, cobalt, rare earth elements, graphite, vanadium, tungsten, and platinum group elements. The Geological Survey of India (GSI) has been tasked with conducting 1,200 exploration projects from FY 2024-25 to FY 2030-31.

Critical Minerals List

India’s committee (formed November 2022 under Ministry of Mines) identified 30 critical minerals:

Antimony, Beryllium, Bismuth, Cadmium, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Nickel, Niobium, Phosphorous, Platinum Group Elements (PGE), Potash, Rare Earth Elements (REE), Rhenium, Selenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, and Zirconium.

Why These Minerals Are Critical

• Green energy transition: Lithium, cobalt, nickel, and graphite are essential for batteries (EVs, grid storage)
• Defence and aerospace: Titanium, tungsten, rhenium, and hafnium are used in advanced defence systems
• Electronics and semiconductors: Gallium, germanium, indium, and silicon are fundamental to chip manufacturing
• Rare earth elements: Used in wind turbines, electric motors, and military equipment
• India’s import dependence: India imports nearly 100% of its lithium, cobalt, nickel, and rare earth requirements

Six Pillars of the Mission

1. Domestic Exploration and Mining

• Expanding geological exploration including offshore mineral resources
• Fast-track mining approvals through a single-window system
• Introduction of Exploration Licences for private sector participation
• Establishment of Critical Mineral Processing Parks near mining zones

2. Overseas Acquisition

• Government-earmarked funds for acquiring mineral assets abroad
• Coordination between Ministry of Mines and Ministry of External Affairs (MEA)
• PSUs like KABIL (Khanij Bidesh India Limited) to lead overseas acquisitions
• Focus on resource-rich countries: Australia, Argentina, Chile, DRC, South Africa

3. Recycling and Urban Mining

• Incentive scheme for recycling critical minerals from e-waste and end-of-life products
• Recycling Advisory Group to develop standards and processes
• Promote circular economy approach for battery recycling and recovery

4. Trade and Strategic Reserves

• Enhance trade partnerships with resource-endowed countries
• Zero customs duty on critical mineral imports (expanded in Budget 2025-26)
• Development of national strategic stockpile/reserves for supply security
• Bilateral and multilateral mineral partnerships

5. Research and Development

• Establishment of Centres of Excellence for critical mineral processing technologies
• Global R&D collaboration for advanced extraction and beneficiation
• Innovation promotion for substitute materials and recycling technologies

6. Human Resource Development

• Degree programmes and specialised courses in critical mineral geology and processing
• Scholarships, internships, and capacity-building programmes
• Training support for resource-endowed developing countries

Governance Structure

• Mission Secretariat: Led by Joint Secretary, Ministry of Mines
• Empowered Committee: Chaired by the Cabinet Secretary, with representation from key ministries
• KABIL (Khanij Bidesh India Limited): Joint venture of NALCO, HCL, and MECL for overseas acquisition of critical mineral assets

Latest Developments

• 29 January 2025: Union Cabinet approved the NCMM with an outlay of ₹34,300 crore over seven years.
• Union Budget 2025-26: Customs duty on 12 additional critical minerals reduced to zero, along with cobalt powder, waste and scraps of lithium, lead, and zinc. This builds on earlier duty exemptions for 25 critical minerals announced in Budget 2024-25.
• FY 2025-26: GSI planned 227 exploration projects for critical minerals, up from 195 ongoing projects in FY 2024-25.
• MMDR Act amendments: The government amended the MMDR Act to include 24 critical minerals under Part D of Schedule I, enabling auction of exploration licences to the private sector.
• KABIL operations: KABIL signed MoUs with Argentina, Australia, and Chile for lithium and cobalt acquisition. India secured its first overseas lithium block in Argentina.
• Lithium discovery in J&K: GSI confirmed lithium deposits of 5.9 million tonnes (inferred) in the Salal-Haimana area of Reasi district, Jammu & Kashmir — India’s first significant domestic lithium find.

Prelims Importance

• NCMM approved on 29 January 2025 with ₹34,300 crore outlay (₹16,300 crore government + ₹18,000 crore PSU)
• Duration: FY 2024-25 to FY 2030-31 (seven years)
• Nodal ministry: Ministry of Mines
• India identified 30 critical minerals (24 in MMDR Act Schedule I Part D)
• Empowered Committee chaired by the Cabinet Secretary
• KABIL (Khanij Bidesh India Limited) — JV of NALCO, HCL, MECL — handles overseas mineral acquisitions
• GSI tasked with 1,200 exploration projects over the mission period
• Zero customs duty on critical minerals (expanded in Budget 2025-26)
• Lithium deposits found in Reasi district, Jammu & Kashmir (5.9 million tonnes inferred)
• Key critical minerals: Lithium, Cobalt, REE, Graphite, Nickel, Tungsten, Vanadium, PGE
• The mission covers the entire value chain: exploration, mining, beneficiation, processing, recycling

Mains & Interview Importance

GS Paper 3 — Economy, Science & Technology, Security:

• Critically evaluate the National Critical Mineral Mission in the context of India’s green energy transition and strategic autonomy. Can India reduce its near-total import dependence on critical minerals within the mission timeline?
• Discuss the geopolitical dimensions of critical mineral supply chains. How does India’s NCMM compare with similar initiatives by the US (IRA), EU (Critical Raw Materials Act), and China’s mineral dominance strategy?
• Examine the environmental and social challenges of domestic mining of critical minerals, particularly in ecologically sensitive regions like J&K. How should India balance mineral security with environmental protection?

Interview Angles:

• “China controls 60-70% of global rare earth processing. Can India’s NCMM realistically break this monopoly, or is it too late?”
• “The MMDR Act amendments allow private sector exploration licences for critical minerals. Is this a paradigm shift in India’s mining policy?”
• “Lithium was found in J&K. But extracting it at scale requires massive infrastructure in a sensitive border region. How should India approach this?”

Sources: PIB, Ministry of Mines, GSI