National Critical Mineral Mission

Context: The Union Cabinet has approved setting up of National Critical Minerals Mission (NCMM) with a budgetary outlay of Rs 16,300 crore over seven years.

About National Critical Minerals Mission (NCCM)

• The National Critical Mineral Mission will be implemented under the Ministry of Mines for a period from FY 2024-25 to 2030-31.
• The mission will have a financial outlay of ₹16,300 crore and an additional funding support of ₹18,000 crore will be raised from different PSUs. 
• Nodal Ministry: Ministry of Mines
• Objectives of NCCM:
  • To secure India’s critical mineral supply chain.
  • To ensure mineral availability from domestic and foreign sources. 
  • To strengthen the value chains by enhancing technological, regulatory, and financial ecosystems.
  • To foster innovation, skill development, and global competitiveness in mineral exploration, mining, beneficiation, processing, and recycling.
• Critical Minerals: 
  • Apart from lithium, there are 23 other critical and strategically important minerals that have been identified. 
  • These include vanadium, tungsten, molybdenum, platinum group of elements, rare earth elements and potash etc. 
• Governance Framework:
  • Mission Secretariat to be led by the Joint Secretary. The mission will also have a director, geologists, mineral economists and professionals from the mining industry, mineral processing industry and finance.
  • Empowered Committee on Critical Minerals to coordinate activities.
    • Chaired by: Cabinet Secretary 
    • Members from relevant stakeholder ministries. 
• Present status: 
  • India is a net importer of most critical minerals on account of their nil or limited reserve/production in the country.
  • The net import bill for critical minerals (excluding lithium) for FY24, was approximately ₹30,000 crore, with net phosphorous imports being the highest at ₹12,648 crore. 
  • Rare earth elements were the only segment in which India was a net exporter. 

Components of NCCM

• Increasing Domestic Critical Minerals Production:
  • Expanding exploration and mining activities
  • Mining in offshore areas
  • Fast-track regulatory approval process for domestic critical minerals exploration and mining projects 
  • Exploration Licences (EL) for encouraging private participation in exploration activities.
  • Formation of Critical Mineral Processing Parks.
• Acquisition of Critical Mineral Assets abroad:
  • Government will earmark funds to support Critical Minerals Exploration Activities outside India. 
  • Motivate Central PSUs and encourage private sector companies to allocate funds for the acquisition of critical mineral assets overseas. 
  • The Empowered Committee will give broad directions and inter-ministerial support to PSUs and stakeholders to acquire critical mineral assets abroad.
  • Ministry of Mines to work closely with the Ministry of External Affairs (MEA) to engage with the regulators from the resource country to support the development of mineral evacuation infrastructure.
• Recycling of Critical Minerals:
  • Incentive scheme for setting up minerals recycling
  • Formation of Recycling Advisory Group on Critical Minerals
• Trade and Markets:
  • Enhance Trade with Resource-Endowed Countries
  • Eliminate Import Duty on Critical Minerals
  • Develop National Critical Mineral Stockpile/Reserves
• Scientific Research & Technological Advancement:
  • Promoting Research and Innovation in Critical Minerals 
  • Establishing a Center of Excellence (COE) on Critical Minerals 
  • Global Collaboration on R&D
• Human Resource Development:
  • Promoting Expertise and Skilled Workforce in Critical Minerals 
  • Develop Targeted Degree Programs, Scholarships, and Internships 
  • Capacity Building Programs for Resource-Endowed Countries

Rationale behind NCCM

• Importance of Critical Minerals:
  • Critical minerals are those minerals essential for economic development and national security.
  • Lack of availability of these minerals or even concentration of their existence, extraction or processing in few geographical locations may lead to supply chain vulnerability and disruption.
• Global Context:
  • China’s restrictions on certain critical minerals, Russia-Ukraine War, and other issues highlight the fragility of critical mineral supply and the need for diversifying sources.
• Meeting India’s climate commitments:
  • Reducing emissions intensity of GDP by 45% by 2030, compared to 2005 levels. 
  • Achieving 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. 
  • Achieving the target of net zero emissions by 2070. 

International Collaborations for Critical Minerals

• Mineral Security Partnership (MSP):
  • Collaboration of 14 countries (including India) and EU to catalyse public and private investment in critical mineral supply-chains globally.
• Initiative on Critical and Emerging Technology (iCET):
  • Announced in May 2022. 
  • 12 Projects prepared for taking up under iCET by involving GSI, IBM and IREL along with concerned institutes/ organisations in the USA.
• Indo-Pacific Economic Framework (IPEF): 
  • US led initiative bringing together 14 partner countries, launched in May 2022.
  • 2024 Dialogue highlighted India’s initiatives to develop the critical mineral value chain and auctioning of critical and strategic mineral blocks in India.
• Quadrilateral Security Dialogue (QUAD): 
  • Strategic security forum involves- India, USA, Australia and Japan.
  • At the 2023 leaders’ summit, partners announced a Quad statement of “Principles on Clean Energy Supply Chains in the Indo-Pacific. 
  • Quad partners have set up the Quad Investors Network (QIN), with a working group focusing on clean energy and critical minerals.
• India-UK Technology and Security Initiative (TSI): 
  • Launched in July 2024. 
  • The Ministry of Mines is taking up research projects related to Critical Minerals.  
• Bilateral MoUs:
  • The Ministry of Mines entered into MoUs with Governments of various countries such as Australia, Argentina, Chile etc.

Read More: China tops list of Critical Mineral suppliers to India