India expands critical minerals strategy to secure supply chains

India is leveraging its diplomatic network to assist companies in acquiring critical mineral assets abroad, aiming to support its growing manufacturing sectors in electric vehicles, batteries, and advanced electronics. The government has appointed nodal officers in Indian missions within mineral-rich nations to help navigate local regulations and identify exploration opportunities.

To reduce dependence on imports for essential materials like lithium, copper, and rare earth elements, India has launched a ₹34,300-crore National Critical Mineral Mission. The initiative targets the acquisition of 50 overseas mines by 2031. However, experts note that securing these assets requires more than diplomacy; India must also address needs for affordable finance, domestic processing capacity, and political-risk protection.

Currently, China maintains a dominant position in the global supply chain, accounting for approximately 90% of rare earth element refining and a significant share of lithium and cobalt processing. This concentration of refining capabilities means that controlling the industrial value of minerals often lies with the processing nation rather than the one extracting the ore.