Government is set to take a major step toward strengthening its critical minerals ecosystem, as a key government scheme focused on building a domestic processing value chain is in its final stages. Piyush Goyal, Mines Secretary, confirmed that the Critical Minerals Processing Scheme is nearing completion, with further details expected after formal approval.
Strengthening Domestic Processing Capabilities
The proposed scheme aims to address a critical gap in India’s mineral value chain—the lack of domestic processing infrastructure. Currently, India faces challenges in importing key minerals such as lithium due to limited in-country processing capabilities. The initiative will focus on developing robust processing facilities, enabling India to move beyond raw material dependency and build a self-reliant ecosystem.
Boost to EV Battery Manufacturing and Clean Energy
The scheme is expected to play a pivotal role in strengthening India’s electric vehicle (EV) battery manufacturing sector. By ensuring reliable access to processed critical minerals, the country can enhance supply chain resilience and support its clean energy transition. As a result, industries such as EVs, renewable energy, and advanced electronics will benefit from improved material availability and reduced import risks.
Overseas Resource Acquisition Strategy
India is actively securing critical mineral resources globally. The government is exploring investments in lithium assets across countries such as Brazil, Argentina and Australia. Additionally, critical mineral blocks are being evaluated in Canada. Notably, production from five lithium blocks in Argentina is expected to begin by 2029, further strengthening long-term supply security.
Strategic Partnerships and Industry Participation
At the same time, Coal India Limited, NTPC Limited, and Hindustan Copper Limited are in discussions with Codelco to acquire mineral assets in Chile. These collaborations highlight India’s multi-pronged approach to securing resources through both domestic development and international partnerships.
A Step Toward Secure and Sustainable Supply Chains
As reported by knnindia.co.in, the finalisation of the Critical Minerals Processing Scheme marks a crucial milestone. By integrating domestic processing with global resource acquisition, India is building a resilient, future-ready supply chain for critical minerals—key to powering its clean energy and industrial growth ambitions.
