India Urges Private Sector to Mine Critical Minerals Overseas Amid China Export Curbs

Amid escalating global tensions over critical mineral supplies, India is turning to its private sector to reduce dependence on China and secure access to essential raw materials needed for its energy transition and high-tech ambitions. On July 3, Union Coal and Mines Minister G. Kishan Reddy confirmed that the Centre is actively promoting overseas exploration and mining by Indian private companies, urging them to repatriate minerals such as lithium, cobalt, nickel, and rare earth elements. These inputs are indispensable for the electric vehicle (EV) ecosystem, renewable energy technologies, electronics manufacturing, and defence production—all of which are cornerstones of India’s growth strategy.

Highlights:

• India urges private firms to mine critical minerals abroad and return output.

• Push targets minerals vital for EVs, clean energy, and national security.

• Centre responds to overdependence on China for rare earths and magnet materials.

• G. Kishan Reddy confirms proactive government encouragement of private mining.

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National Critical Mineral Mission Gains Momentum with Robust Backing

The National Critical Mineral Mission (NCMM), which received cabinet approval in January 2025, has emerged as a cornerstone of India’s response to global supply chain risks. With a planned government outlay of ₹16,300 crore and an additional ₹18,000 crore pledged by public sector units, the mission aims to systematically develop mineral exploration, acquisition, and processing capabilities. Finance Minister Nirmala Sitharaman had unveiled the framework in the Union Budget 2024–25, placing critical mineral security alongside infrastructure and green economy priorities. The government now intends to fast-track private-sector engagement under this mission, operating in “mission mode” to counteract external supply volatility.

Highlights:

• NCMM cleared in January 2025 with ₹34,300 crore in combined funding.

• Mission targets long-term security of critical mineral supply chains.

• Private sector participation seen as key to mission’s success.

• NCMM aligns with budgetary and national energy goals.

China’s Export Restrictions Intensify India’s Drive for Supply Diversification

India’s aggressive stance on mineral security comes in response to China’s April 2025 export curbs on rare earth-related products, which have rattled global manufacturing sectors. As the world’s dominant supplier—accounting for over 90 percent of magnet production capacity—China’s control has revealed a strategic vulnerability for import-dependent nations like India. Although diplomatic channels remain open, including talks with Beijing to seek predictability in exports, Indian officials are simultaneously scouting alternative global reserves. The aim is to ensure insulation from geopolitical shocks and uphold India’s Atmanirbhar Bharat vision, where domestic industries are protected from external disruptions.

Highlights:

• China’s April 2025 curbs on rare earth exports trigger global concern.

• India depends on Chinese supplies for EV, defence, and electronics sectors.

• Talks underway with China, but diversification is a parallel strategy.

• Policy shift tied closely to Atmanirbhar Bharat and strategic autonomy.