The electric vehicle (EV) boom and the clean energy revolution have accelerated demand for critical minerals worldwide. EV sales surpassed 17 million in 2024 and are expected to exceed 20 million in 2025. Lithium, cobalt, and rare earth elements have become strategic commodities vital for batteries, electronics, and renewable energy technologies. China’s export restrictions on rare-earth magnets in April 2025 disrupted global supply chains, halving shipments and triggering warnings of production halts from automakers. This disruption, however, has spurred greater international cooperation and strategic initiatives.
Global Supply Chain Shifts
China’s export curbs exposed vulnerabilities in mineral supply chains. Countries and companies responded by diversifying sources and boosting domestic capabilities. The United States is expanding refining capacity and prioritising allied buyers. The European Union is fast-tracking projects under its Critical Raw Materials Act. Australia and Japan are deepening partnerships to supply lithium and rare earths to key markets. These efforts reflect a strategic shift from dependence on single suppliers to more resilient, diversified networks.
India’s Strategic Mineral Initiatives
India is actively building its mineral resilience. The Quad’s Critical Minerals Initiative, launched in July 2025, aims to secure and diversify supply chains through cooperation among member countries. India formed a dedicated task force and signed mining agreements in Africa. It is stockpiling essential minerals and planning new battery metals ecosystems. Domestic manufacturers are preparing to set up cathode plants and EV component hubs, supported by government incentives and the Raw Materials Act.
Industrial and Diplomatic Progress in India
India imported over 53,000 metric tons of rare-earth magnets in FY2025, denoting import dependence. To address this, India launched a seven-year national plan for rare-earth processing and magnet production. Major firms like Vedanta and Tata Steel are investing heavily in mining and processing projects. Gujarat Mineral Development Corporation and Indian Rare Earths Ltd. are expanding rare earth and titanium production through joint ventures. Diplomatic efforts include the India-U.S. Joint Framework on Critical Minerals and collaboration with Quad partners to harmonise standards and open new markets.
Challenges and Opportunities Ahead
India faces challenges in regulatory delays and value addition. Permitting processes currently take up to 18 years, hindering rapid development. Policymakers are urged to streamline approvals and promote public–private partnerships to build gigafactories and processing units. Innovation in recycling and circular supply chains is critical. India can learn from Japan’s advanced battery metal recovery technologies. Trade diplomacy must secure long-term offtake agreements to encourage investment. Domestic R&D in rare-earth magnet technology is growing, reducing reliance on China.
Institutionalising Mineral Resilience
The Quad and Minerals Security Partnership are setting frameworks for sustainable mining, financing, and joint projects. As Chinese ore licences shift, alternative suppliers from India and the U.S. are scaling up operations. Institutionalising agility through long-term planning and partnerships is vital to avoid future supply shocks. With strategic foresight, India and its partners can transform the current mineral crunch into a competitive advantage for the clean energy transition.
Questions for UPSC:
- Critically discuss the impact of critical mineral supply chain disruptions on global clean energy transitions and national security.
- Examine the role of international partnerships like the Quad in securing critical mineral supply chains and their implications for geopolitical stability.
- Analyse India’s strategic initiatives in critical mineral development and assess how regulatory reforms can accelerate its industrial growth.
- Estimate the challenges and opportunities in establishing a circular economy for battery metals and its significance for sustainable development.
