India announced plans to establish strategic reserves of critical minerals essential for defense manufacturing and clean energy technologies, as the world’s most populous nation seeks to reduce dependence on imports and counter supply chain vulnerabilities.
A senior Ministry of Defence official said Saturday that India is preparing to create a strategic reserve of critical minerals to meet emergency requirements in defense manufacturing, marking the first time the country has publicly disclosed such plans.
“The reserve would help tide over immediate requirement whenever shortages arise,” said Rajesh Kumar Singh, a top defense ministry official, speaking at a media event in New Delhi. Key defense equipment including missiles, aircraft, radars and warships depend heavily on critical minerals.
Sponsored · Nord Precious Metals
The announcement comes as part of India’s broader National Critical Mineral Mission, which the Cabinet approved in January with a budget of 34,300 crore rupees ($4.1 billion) over seven years. The mission allocates 500 crore rupees specifically for developing strategic mineral stockpiles.
India faces significant supply chain risks, with 100% import dependency for minerals like lithium, cobalt and nickel, despite having substantial domestic reserves of minerals including 44.9 million tonnes of cobalt ore and 211.6 million tonnes of graphite.
The move follows China’s tightening grip on global critical mineral supplies. Beijing imposed export controls on certain minerals in April, disrupting supply chains across industries from electric vehicles to wind turbines. China controls 90% of global rare earth magnet output and processes 60% of critical minerals worldwide.
Related: China Expands Rare Earth Controls, Now Regulating Imports
Sponsored · Emerita Resources Corp.
“Supply disruptions could severely undermine defense preparedness,” Singh noted, highlighting the strategic importance of the reserves.
The government has classified rare earth mines as “strategic projects” to expedite environmental clearances and streamline mining procedures. India has also eliminated customs duties on 25 critical minerals and launched a 15 billion rupee recycling program for critical minerals from batteries and electronic waste.
As part of its international strategy, India has secured lithium exploration rights covering 15,703 hectares in Argentina and signed agreements with Australia for strategic mineral investments.
The mission aims to reduce India’s reliance on mineral imports while supporting the country’s transition to clean energy and its goal of achieving net-zero emissions by 2070.
India joins other nations, including Japan, South Korea, the European Union, and the United States, in building strategic mineral reserves as critical materials gain increasing importance for economic and national security.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
