Key Takeaways
- Secure, diversified supply chains are essential for the global energy transition.
- India is actively seeking lithium and other critical minerals from Argentina, Australia and Chile.
- Recycling of e‑waste can meet 25‑30% of India’s critical mineral demand.
- Strategic partnerships with the US, France, and Quad partners aim to build resilient supply networks.
Brics Summit Highlights the Need for Secure Critical Mineral Supply Chains
In a joint address at the Brics summit held in New Delhi, leaders of Brazil, Russia, India, China and South Africa underscored the strategic importance of securing reliable supply chains for critical minerals that underpin the global transition to cleaner energy.
PM Modi’s Call to Avoid Weaponisation of Minerals
Prime Minister Narendra Modi, delivering the final remarks, cautioned that the commodification of minerals such as lithium, cobalt and rare earths could turn them into geopolitical weapons, hindering shared progress in the green economy.
India’s Strategic Moves to Diversify Mineral Sources
India’s Minister of Coal and Mines, G Kishan Reddy, informed reporters that the country is actively negotiating with Argentina to acquire five new lithium blocks, while talks are also underway with Australia and Chile. “India has limited lithium reserves,” he noted, “so we must look abroad to secure supplies.”
The government has earmarked 30 minerals as strategically critical and launched the National Critical Mineral Mission in 2025, allocating a total of ₹34,300 crore to exploration, mining, processing, recycling and overseas asset acquisition. The Geological Survey of India has already undertaken 300 exploration projects this year alone.
“We are encouraging private companies to acquire mineral blocks overseas, undertake mining and semi‑processing, and bring raw material to India,” an official said.
International Partnerships and Frameworks
In May, India signed a strategic framework with the United States to co‑invest in mining and processing of critical minerals and rare earths, aiming to safeguard supply chains from market coercion.
In Australia, state‑run Khanij Bidesh India Limited has partnered with its critical minerals office for joint exploration. India is also collaborating with France through a dedicated joint working group and has joined the Quad Critical Minerals Initiative, comprising the US, Japan and Australia, to build resilient and trusted supply networks.
Domestic Development of Processing Capabilities
On the home front, the government is establishing critical mineral parks in Andhra Pradesh, Odisha, Maharashtra and Gujarat to develop processing facilities for lithium, nickel, zirconium and rare earth magnets.
Recycling as a Pillar of Self‑Reliance
The Ministry of Mines is working on an incentive scheme worth ₹1,500 crore to promote recycling of critical minerals from electronic waste. Initially, 125 companies applied, of which 58 were shortlisted in the first phase. Experts estimate that 25‑30% of India’s critical mineral demand could be met through e‑waste recycling.
Key Takeaways from the Summit
- Secure, diversified supply chains for critical minerals are vital for the energy transition.
- India is pursuing international agreements to acquire lithium and other minerals.
- Domestic processing hubs and recycling initiatives aim to reduce external dependency.
- Strategic frameworks with the US, Australia, France and the Quad partners strengthen resilience.
Overall, the Brics summit’s focus on critical minerals signals a global recognition that the path to zero‑emission technology depends not only on innovation but also on robust, transparent, and equitable resource supply chains.
Frequently Asked Questions
What are critical minerals?
Critical minerals include lithium, cobalt, nickel, copper, graphite, and rare earth elements that are essential for manufacturing electric vehicles, batteries, semiconductors, solar panels, wind turbines, and advanced defense systems.
Why is India focused on diversifying its mineral sources?
India has limited domestic reserves of key minerals like lithium, making it necessary to secure supplies through international partnerships and acquisitions to support its growing green technology sector.
How is India planning to reduce dependence on imports?
The government is investing in domestic processing parks, incentivizing recycling of critical minerals from e‑waste, and encouraging private companies to develop overseas mining assets and bring processed material back to India.
