Now Reading: India Needs Refined Mineral Reserves to Secure Future Supply
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India Needs Refined Mineral Reserves to Secure Future Supply
India has allocated ₹500 crore under the National Critical Mineral Mission for stockpiling, as demand for lithium, cobalt, copper and rare earths grows. The Hindu reports that China accounts for about 70%…
The Story in Brief
India has allocated ₹500 crore under the National Critical Mineral Mission for stockpiling, as demand for lithium, cobalt, copper and rare earths grows. The Hindu reports that China accounts for about 70% of refining across 19 of 20 strategic minerals, leaving India exposed to supply disruptions. India has domestic reserves but remains dependent on imports for lithium, cobalt and nickel, while processing and refining capacity remains limited. The mission targets 1,200 exploration projects, production of at least 15 critical minerals and 50 overseas mining assets by 2030-31. KABIL has secured 15,703 hectares in Argentina for lithium exploration.
The Hindu says reserves should contain refined oxides, processed minerals and finished components, not raw ore. Such stocks require specialised storage, regular rotation and careful pricing. If seven major economies created six-month reserves, modelling suggests demand could absorb 34% of annual cobalt supply and 10% of lithium supply.
The Indian Opinion
The loudest claims present mineral stockpiling as either a quick shield against China or a wasteful government hoard. Neither is fair. Raw ore cannot protect factories without refining capacity, and buying aggressively could drive prices higher. India needs transparent procurement, private processing investment and shared reserves with trusted partners. The practical test is whether the mission delivers its 1,200 exploration projects and 15-mineral production target by 2030-31.
Sources (2): thehindu.com, thehindu.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
