The mines ministry is set to commence the second phase of critical and strategic minerals auctions on February 29th. The auction will be conducted online using a two-stage ascending forward auction method. Eligible bidders will be chosen based on the highest percentage of the mineral’s dispatched value that they quote. Financial grants will be awarded to startups in the mining and mineral sector.
According to the ministry’s statement, the concentration of critical minerals extraction or processing in a few countries, or their limited availability, may result in supply chain vulnerabilities. It emphasizes that future global economic advancements will rely on technologies dependent on minerals like lithium, graphite, cobalt, titanium, and rare earth elements (REE).
In 2023, India unveiled its list of critical and strategic minerals, which included lithium, molybdenum, titanium, copper, and others. The initial round of critical mineral auctions in 2023 encompassed minerals such as lithium, copper, nickel, glauconite, graphite, manganese, and molybdenum, spanning 20 mineral blocks across eight states.
Critical minerals such as lithium are pivotal to India’s efforts to reduce its carbon footprint and transition to green energy. India has pledged to achieve 50% of its cumulative electric power installed capacity from non-fossil sources by 2030, which will drive demand for electric vehicles, wind and solar energy projects, and battery storage systems, consequently increasing demand for these minerals. As reported by businessline, in a move to encourage private investments in the sector, India recently amended the MMDR Act to designate 24 minerals as critical and strategic.
