What are Critical Minerals
Critical minerals are those minerals that are essential for national security, economic development, and advanced technologies but are vulnerable to supply disruptions. Their criticality arises from two key factors:
- High economic importance, especially in emerging technologies and strategic sectors
- High supply risk due to geographical concentration, limited reserves, or processing constraints
Supply disruptions often occur because:
- Many critical minerals are found as by-products of major minerals
- Processing and refining capacity is concentrated in a few countries
For instance, a significant share of global refining of cobalt, lithium, rare earth elements, and copper is concentrated in China.
Significance of Coking Coal as a Critical Mineral
India possesses approximately 37 billion tonnes of coking coal reserves, primarily in Jharkhand, with additional deposits in Madhya Pradesh, West Bengal, and Chhattisgarh. Despite this, imports have increased steadily in recent years.
Currently, nearly 95% of India’s coking coal requirement for steel production is met through imports, leading to substantial foreign exchange outflow.
By classifying coking coal as a critical mineral, the government aims to:
- Accelerate approvals and regulatory clearances
- Promote deeper exploration and mining
- Improve ease of doing business
- Encourage private sector participation
- Reduce import dependence and strengthen industrial security
Uses of Coking Coal
- Essential raw material for producing coke used in steel manufacturing
- Supports infrastructure development such as railways, roads, housing, and defence
- Strengthens economic stability by reducing import dependency
- Promotes employment and investment in the mining sector
Applications of Critical Minerals
Energy Transition
Critical minerals are indispensable for clean energy technologies such as solar panels, wind turbines, and advanced batteries. Lithium and cobalt are central to lithium-ion batteries used in electric vehicles.
Modern Technologies
They are vital for semiconductors, LEDs, high-speed chips, and digital electronics.
Defence and Strategic Technologies
Used in aerospace, precision weaponry, submarines, and advanced military systems. Titanium and rare earth elements are key examples.
Medical Sector
Used in MRI machines, imaging systems, and medical implants.
Space Technologies
Essential for satellites, telescopes, and nuclear energy infrastructure. Beryllium plays a role in space applications.
Critical Minerals Identified by India
In 2023, the Government of India identified 30 critical minerals essential for economic growth and strategic security. These include:
- Lithium
- Cobalt
- Nickel
- Copper
- Graphite
- Rare Earth Elements
- Beryllium
- Tungsten
- Titanium
- Vanadium
- Zircon
- Niobium
- Gallium
- Germanium
- Tantalum
- Tellurium
- Silicon
- Molybdenum
- Phosphorus
- Potash
- Tin
- Indium
- Hafnium
- Rhenium
- Selenium
- Strontium
- Cadmium
- Bismuth
- Antimony
- Platinum Group Elements (PGE)
Critical Minerals vs Rare Earth Elements
Critical minerals represent a broader category based on economic importance and supply risk. Rare Earth Elements (REEs) are a specific group of 17 chemically similar elements in the periodic table.
REEs are a subset of critical minerals when they are strategically significant. They are mainly used in permanent magnets, electric vehicles, wind turbines, electronics, and defence systems.
Global Scenario
Globally, mining and refining of critical minerals are concentrated in limited regions:
- Lithium: Major producers include Australia, Chile, and China
- Cobalt: Dominated by the Democratic Republic of Congo
- Nickel: Indonesia and the Philippines are major producers
- Rare Earth Elements: China leads in mining and refining
This concentration increases global supply vulnerabilities.
Five-Pillar Value Chain for Critical Minerals
Geoscience and Exploration
Geological Survey of India has identified mineral-rich zones. Reforms under the MMDR Amendment Act, 2021 and support from the National Mineral Exploration Trust have enhanced private participation.
Mining and Extraction
Includes surface and underground extraction using advanced machinery.
Processing and Refining
India needs to strengthen refining capacity and scale laboratory innovations to commercial levels.
Manufacturing and Technology Integration
Critical minerals are used in electric vehicles, renewable energy equipment, electronics, and advanced manufacturing. Government initiatives such as the Production-Linked Incentive scheme promote domestic manufacturing.
Recycling and Recovery
Recycling reduces dependence on imports. Currently, recycling rates are significant only for metals such as steel, lead, copper, and aluminium. Greater policy focus is required for battery and electronic waste recovery.
Government Initiatives
- National Critical Minerals Mission
- Overseas mineral asset acquisition through partnerships such as KABIL
- Exploration reforms under MMDR amendments
- Promotion of recycling policies
- Strategic studies by research institutions to identify mineral vulnerabilities
India adopted a structured three-stage assessment process involving global benchmarking, inter-ministerial consultation, and empirical analysis. Based on this, 30 minerals were identified as most critical for national priorities.
The government has also proposed establishing a Centre of Excellence for Critical Minerals to focus on advanced exploration, R&D, policy coordination, and international collaboration.
Conclusion
Critical minerals are foundational to India’s energy transition, technological advancement, defence preparedness, and industrial growth. Ensuring secure access requires strengthening domestic exploration, refining capacity, recycling infrastructure, and strategic international partnerships. A comprehensive value chain approach is essential to reduce import dependence and enhance long-term economic resilience.
