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Key Points

India is ramping up domestic production of lithium and cobalt to reduce reliance on imports for EV batteries. The government has launched a Rs 16,300 crore mission to boost exploration and processing of critical minerals. Over 300 exploration projects are underway, with more planned for the next fiscal year. Customs duties have also been reduced to attract foreign investment in the sector.

Key Points: India Boosts Domestic Lithium Cobalt Production for EV Batteries

  • Govt approves Rs 16,300 crore NCMM for critical mineral production
  • GSI undertaking 368 exploration projects for EV battery minerals
  • 100% FDI allowed for mining under automatic route
  • Customs duties slashed on 25 minerals to boost sector
2 min read

India doubles down on domestic production of critical minerals

India launches Rs 16,300 crore National Critical Mineral Mission to cut reliance on imported lithium and cobalt for EV batteries.

"The exploration of critical minerals has been significantly increased. – Bhupathiraju Srinivasa Varma, MoS Heavy Industries"

New Delhi, July 30

In order to boost domestic production and reduce India’s dependence on imported lithium, cobalt and other key materials required for EV batteries, the government has taken several significant steps, including the National Critical Mineral Mission (NCMM) and enhancing the exploration of critical minerals.

The Union Cabinet approved the launch of NCMM for a period of seven years from 2024-25 to 2030-31, with a proposed expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings (PSUs) and other stakeholders.

The exploration of critical minerals has been significantly increased. Over the past three years, the Geological Survey of India (GSI) has undertaken 368 exploration projects focused on critical and strategic minerals. In the FY 2024-25, 195 projects are being executed and 227 projects have been approved for the upcoming financial year, said Minister of State for Heavy Industries, Bhupathiraju Srinivasa Varma, in a written reply in the Lok Sabha.

The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) has been amended through the MMDR Amendment Act, 2023 w.e.f. 17.08.2023. The Amendment Act, 2023 provides for:

According to the government, 100 per cent FDI is allowed under “Automatic” route for mining and exploration of metal and non-metal ores. A foreign company may incorporate an Indian subsidiary company or invest in an existing Indian Company to become eligible for grant of mining and exploration rights.

To further support the critical minerals sector, the government has eliminated customs duties on 25 minerals and reduced Basic Customs Duties (BCD) on 2 minerals in the Union Budget for 2024-25.

India has approximately 7.23 million tonnes (MT) of Rare Earth Elements Oxide (REO) contained in 13.15 MT monazite (a mineral of Thorium and Rare Earths) occurring in the coastal beach, teri and red sand and inland alluvium in parts of Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra, while another 1.29 MT rare earths are situated in hard rocks in parts of Gujarat and Rajasthan.

—IANS

- IANS

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Reader Comments

P
Priya S
Rs 16,300 crore seems like a huge amount. I hope there's proper monitoring so the funds don't get wasted in bureaucracy. We've seen too many schemes fail due to poor implementation.
R
Rohit P
Great initiative! But what about the environmental impact? Mining these minerals in coastal areas could damage fragile ecosystems. Development is important but not at nature's cost.
S
Sarah B
As someone working in renewable energy sector, this is fantastic news! India has so much potential in rare earth minerals. With proper investment and technology, we can become global leaders in EV battery production 💪
V
Vikram M
The 100% FDI route is a smart move. We need foreign expertise in mining technology. But government must ensure Indian companies also get fair share of benefits, not just become junior partners.
K
Kavya N
My brother works in Odisha's mining sector. They've found promising deposits but lack proper equipment. Hope this mission provides modern tech to local miners too, not just big corporations.

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