Brics Leaders Advocate for Reliable Supply Chains in Critical Minerals Sector
NEW DELHI: The Brics summit highlighted the growing importance of critical minerals in the global energy transition. Leaders emphasized the need for reliable and diversified supply chains for minerals essential to zero- and low-emission energy technologies. Prime Minister Narendra Modi warned that the weaponization of these minerals could hinder collective progress.
Critical minerals, including lithium, cobalt, nickel, copper, graphite, and rare earth elements, are vital for the production of electric vehicles, batteries, semiconductors, solar panels, wind turbines, and advanced defense systems. However, their supply is prone to significant disruptions. On the sidelines of the summit, Coal and Mines Minister G Kishan Reddy announced that India is negotiating with Argentina to acquire five additional lithium blocks, while also engaging with Australia and Chile to secure supplies.
The Indian government has identified 30 minerals as strategically important and launched the National Critical Mineral Mission in 2025, with a financial commitment of Rs 34,300 crore. This initiative aims to promote exploration, mining, processing, recycling, and overseas asset acquisition. Officials reported that the Geological Survey of India has initiated 300 critical mineral exploration projects this year. The government is also encouraging private companies to acquire mineral blocks abroad and facilitate the mining and semi-processing of these resources.
In addition to international collaborations, the Indian government signed a strategic framework with the US in May to enhance mining and processing of critical minerals and rare earths. This partnership aims to co-invest in supply chains and mitigate market coercion. In Australia, state-run Khanij Bidesh India Limited is collaborating with the critical minerals office for joint exploration. India is also working with France through a dedicated joint working group and has joined the Quad Critical Minerals Initiative with the US, Japan, and Australia to establish resilient supply networks.
Domestically, the government is establishing critical minerals parks in Andhra Pradesh, Odisha, Maharashtra, and Gujarat to enhance processing capabilities for minerals like lithium, nickel, zirconium, and rare earth magnets. Experts note that India’s challenges extend beyond resource discovery; they include converting these discoveries into commercially viable mines, developing domestic processing technologies, and reducing reliance on foreign supply chains. The government is also developing an incentive scheme for recycling critical minerals from e-waste, with an initial allocation of Rs 1,500 crore. Approximately 125 companies applied, with 58 shortlisted in the first phase, and it is estimated that 25-30% of India’s critical mineral needs could be met through e-waste recycling.
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