NEW DELHI: India plans to maximise the auction of critical mineral blocks by 2031, advancing its strategic push to secure domestic supply chains for minerals essential to the country’s green energy and technology sectors, according to Union Minister of State for Mines and Coal Satish Chandra Dubey.
Speaking at a FICCI conference on Critical Minerals Matrix in Mumbai on Friday, Dubey outlined the government’s strategic approach to reducing import dependency for critical minerals. The announcement follows the recent launch of the National Critical Minerals Mission, which has allocated ₹34,300 crore over seven years to strengthen India’s position in the critical minerals sector.
“The government has already auctioned 24 critical mineral blocks domestically, and we aim to auction as many critical mineral blocks as possible by 2031,” the minister said. The initiative forms part of a broader strategy to enhance India’s mineral security and reduce vulnerability to international supply chain disruptions.
Emphasising the role of public-private partnerships in achieving these objectives, Dubey said, “We must work as complementary partners and as a team to build a self-reliant India.” He urged increased private sector involvement in mineral exploration and extraction activities.
The announcement comes amid growing concerns about critical mineral supply chains, particularly for materials essential to electric vehicles, electronics manufacturing, and renewable energy systems.
Jyoti Vij, Director General, FICCI, highlighted the economic significance of critical minerals. She emphasised that the launch of the National Critical Minerals Mission was timely, coinciding with increased budget emphasis on critical minerals, and would help boost production, recycling, and global acquisition of critical mineral assets to reduce dependence on imports and secure stable supply chains. Vij announced the constitution of the FICCI Committee on Critical Minerals, which will work closely with the government and the industry stakeholders to address sector issues and leverage opportunities.
Dhiraj Nayyar, Group Chief Economist, Vedanta, highlighted the urgency of developing domestic resources, noting that electric vehicles require six times more minerals than conventional cars, whilst offshore wind infrastructure demands nine times more minerals than traditional power plants. “We don’t want to move from import dependence on oil to import dependence on critical minerals. The key is exploration,” Nayyar emphasised, calling for streamlined approval processes and increased flexibility in land allocation for exploration activities.
Elaborating on the market opportunity, Pratyush Sinha, Vice President of LOHUM, noted that the government’s ₹34,000 crore scheme represents a methodical policy response to industry demands, developed after extensive consultation. Citing the example of lithium, where global production is expected to increase tenfold in the next decade from the current 130,000 tonnes, Sinha emphasised that rapid market growth creates opportunities for new entrants to establish significant market positions.
India’s critical minerals demand is poised for exponential growth across key sectors, according to a new FICCI-Deloitte report, “Recovery of Critical Minerals from Mine Tailings and Overburden,” launched by the minister at the conference. Rajib Maitra, Partner at Deloitte, highlighted that lithium demand alone is expected to increase nine to tenfold over the next decade. The report identifies significant opportunities in recovering critical minerals from mine tailings and overburden.
The report outlines four key strategic areas for development: policies and incentives, extraction processing technologies, supply chain integration, and capacity building. It recommends establishing Critical Mineral Recovery Zones with public-private partnerships, creating a nationwide assessment database for mine tailings, and developing dedicated regulatory frameworks for mineral extraction. Besides, it emphasises the importance of international collaboration and suggested India could learn from successful models implemented in Australia, the United States, Japan, and Canada, where specific funds and collaborative development programmes support critical mineral recovery from tailings.
