The Centre is progressing with plans to set up four critical mineral processing plants in Odisha, Gujarat, Telangana, and Maharashtra. This initiative is part of the country’s strategy to boost domestic capabilities in producing materials essential for semiconductors, electric vehicles, solar panels, high-tech electronic goods, and defense equipment. Union Coal and Mines Minister G. Kishan Reddy highlighted the National Critical Mineral Mission (NCMM) and mentioned that separate mining blocks for critical minerals have been prepared, with large-scale auctions being conducted for the first time post-independence.
Significant numbers of critical mineral blocks have already been auctioned, marking a significant advancement in establishing India’s domestic supply chain. These projects aim to enhance India’s processing and refining capacities in critical minerals, reducing the historical heavy reliance on imports from China. The government has also entered into multiple memoranda of understanding with various countries to bolster international cooperation and ensure secure supply chains for critical minerals.
As part of the upcoming phase of the mission, the Centre has initiated the process to establish processing plants in Odisha, Gujarat, Telangana, and Maharashtra. The respective state governments have allocated land for these facilities, with dedicated action plans being prepared to support the initiative. Visible progress and positive outcomes in the critical minerals sector are anticipated within the next year as auctions, processing infrastructure, and international partnerships begin translating into operational capacity.
India, possessing the world’s fifth-largest rare earth reserves and the necessary technology for mineral production, can play a significant role in reducing China’s dominance in critical minerals. The global competition for rare earth elements (REEs) has evolved from industrial policy periphery to the core of geopolitics. Currently, China controls about 90% of rare earth separation and processing, along with 93% of magnet manufacturing, utilizing this near monopoly for strategic leverage.
India’s heavy reliance on China for 80-90% of magnets and related materials was evident during a trade dispute when China restricted exports. Supply resumed only after India guaranteed that the materials would not be re-exported to the United States.
