India's ambitious push to secure a stable supply of critical minerals, essential for its clean energy and technological future, is on the right track but progressing at a slower pace than anticipated. This assessment comes from a detailed report by policy research and advisory firm NovalSense, which highlights both the strategic clarity and the practical hurdles facing the national mission.
Strategic Framework in Place, But Execution Lags
The report, titled 'India's Critical Minerals Mission: Assessing Progress and Charting the Path Forward,' acknowledges that the government has laid a strong foundational framework. The identification of 30 critical minerals in July 2023 and the subsequent launch of the first-ever auction of 20 critical mineral blocks, including lithium and rare earth elements, are significant steps. However, NovalSense points out that the mission's pace of implementation is not matching the urgency demanded by the global energy transition and India's own net-zero goals.
A major bottleneck identified is the lack of dedicated and substantial funding. Unlike major global initiatives like the US Inflation Reduction Act or the European Union's Critical Raw Materials Act, which are backed by massive financial outlays, India's mission currently operates without a similarly robust budgetary allocation. This funding gap could severely hamper exploration, mining, and processing activities.
Challenges in Auction Participation and Value Chain Development
The initial auction process, while a landmark move, has revealed areas needing attention. The report notes that the participation from private sector majors, particularly large mining corporations, has been limited. This is attributed to factors such as the nascent stage of the blocks on offer, which require extensive exploration, and perceived regulatory and procedural complexities.
Furthermore, the mission's focus cannot be solely on extraction. NovalSense emphasizes that India must simultaneously build capabilities across the entire value chain. Developing domestic processing, refining, and manufacturing capacities is crucial to avoid merely exporting raw materials and re-importing finished products. The current strategy, the report suggests, needs a more integrated approach that links mining with downstream industrial policy.
The Geopolitical Imperative and the Road Ahead
The drive for critical minerals is deeply geopolitical. With a handful of nations controlling the supply of minerals like lithium, cobalt, and nickel, India's import dependence poses a strategic vulnerability. The NovalSense report underscores that accelerating the mission is not just an economic necessity but a key component of national security and technological sovereignty.
To move faster, the report recommends several actions:
- Establishing a dedicated fund to de-risk exploration and attract private investment.
- Streamlining approvals and creating a single-window clearance system for critical mineral projects.
- Fostering international partnerships for technology transfer and securing offtake agreements.
- Enhancing geological surveying to identify more domestic resources.
In conclusion, while India's critical minerals mission has been launched with a clear strategic vision, its journey from policy to on-ground reality is proving to be a marathon rather than a sprint. Bridging the funding gap, incentivizing private participation, and building a complete industrial ecosystem will be decisive in determining whether India can secure its mineral independence and become a significant player in the global clean energy supply chain.
