India’s critical minerals strategy has reached an inflection point. In June 2023, the government identified 30 critical minerals after a structured assessment of economic importance, strategic relevance, and import dependence. However, two years on, policy execution treats all 30 minerals with uniform urgency. This one-size-fits-all approach contradicts the very logic of the assessment framework and risks diluting focus from minerals that pose genuine strategic vulnerability.
How India Identified Its Critical Minerals
The 30-mineral list was the outcome of a three-stage evaluation process that examined:
- the role of each mineral in key economic sectors,
- its strategic and national security relevance, and
- India’s exposure to import dependence.
The methodology implicitly recognised that different minerals face different levels of risk. Yet policy implementation has not translated these distinctions into differentiated priorities.
Why Rare Earths Are Not Just Another Mineral
Among the 30, rare earth elements are listed as a single category. This obscures a crucial reality. Rare earths comprise 17 elements — the 15 lanthanides, along with scandium and yttrium — that share similar processing technologies and end-use applications. The remaining minerals on the list, such as lithium, cobalt, graphite, or nickel, are individually distinct, with separate supply chains.
Rare earths are qualitatively different because:
- they require common, complex refining processes,
- they are used together in technologies such as permanent magnets, wind turbines, and electric vehicles, and
- a disruption affects multiple sectors simultaneously.
A supply shock in rare earths can cripple several industries at once, unlike disruptions in minerals with narrower applications.
China’s Supply Chain Control and the Meaning of “Criticality”
True criticality is not defined by government labels but by the degree of supply chain concentration. China exemplifies this principle. It dominates not only mining but, more importantly, processing and manufacturing stages.
While China controls a majority share in several minerals — natural graphite, cobalt refining, and others — the rare earth situation is exceptional. China’s near-total dominance of refining and magnet manufacturing creates vertical integration that few countries can bypass. This allows supply chains to be weaponised during geopolitical tensions, turning economic dependence into strategic vulnerability.
India’s Paradox: Large Reserves, Zero Capability
India holds over 7 million tonnes of rare earth oxide reserves, ranking among the top global holders. Yet the country lacks commercial-scale refining capacity. As a result, India imports almost all usable rare earth materials despite domestic availability.
This gap between geological potential and industrial capability is the core vulnerability. Without processing infrastructure, reserves alone do not translate into strategic security.
Clean Energy Transition and a Narrower Risk Set
Within the broader list of 30 minerals lies a smaller, more urgent subset: materials critical for the clean energy transition. These minerals share two defining features:
- high and rapidly rising demand driven by electrification, renewables, and electric mobility, and
- strong dependence on Chinese-controlled processing and manufacturing.
Rare earths, lithium, cobalt, graphite, nickel, and copper fall squarely into this category. In contrast, minerals such as phosphorous or potash have diversified global suppliers and do not face comparable geopolitical risk.
The Case for Tiered Prioritisation
India’s central policy challenge is prioritisation. Treating all 30 minerals with equal urgency spreads resources thin and blurs strategic focus. Recent steps suggest recognition of this problem. The approval of dedicated funding for rare earth permanent magnet manufacturing reflects a move toward targeted intervention.
A more coherent framework would involve reclassification:
- Tier One: minerals critical to the energy transition and subject to concentrated processing monopolies.
- Tier Two: minerals with diversified supply chains and lower geopolitical vulnerability.
Such tiering would allow fiscal support, technology acquisition, and international partnerships to be aligned with actual risk.
Strategic Implications Going Forward
Until India differentiates between levels of criticality, its strategy will continue to treat minerals with limited geopolitical exposure on par with those dominated by monopolistic supply chains. This undermines preparedness at a time when mineral supply chains are becoming instruments of global power.
What to Note for Prelims?
- India’s list of 30 critical minerals (June 2023).
- Rare earth elements: composition and uses.
- Difference between mineral reserves and refining capacity.
- Role of critical minerals in clean energy transition.
What to Note for Mains?
- Critically examine India’s approach to critical minerals prioritisation.
- Discuss why rare earths pose a distinct strategic challenge.
- Analyse the implications of concentrated processing monopolies.
- Suggest policy measures for building domestic value chains in critical minerals.
