India’s approach to critical minerals has matured into a multi-layered security strategy that integrates domestic exploration with high-level international partnerships. As of 2026, the focus has shifted from merely identifying resources to building “resilient, China-plus-one” value chains.
1. The Global Pivot: Mineral Security Partnership (MSP)
India is the only developing country in the MSP, a 14-nation “mineral club” led by the US.
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- Strategic Goal:Breaking the monopoly of single-source suppliers (notably China) in the processing and refining stages of the value chain.
- The 2026 Focus:Under the MSP, India is collaborating on “Project-Level Diplomacy.” Instead of just trading, India is partnering with countries like South Korea and Japan for joint extraction projects in third-world nations (e.g., in Africa and South America) to ensure a stable supply of Cobalt and Graphite.
2. The Domestic Engine: National Critical Mineral Mission (NCMM)
Launched in early 2025, the NCMM is a ₹34,300 crore mission aimed at end-to-end supply chain security.
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- Exploration Blitz:The Geological Survey of India (GSI) has accelerated its work, with over 230 exploration projects active in 2025–26 alone, targeting Lithium, REE (Rare Earth Elements), and Vanadium.
- Rare Earth Corridors:The Union Budget 2026–27 announced dedicated corridors in Odisha, Andhra Pradesh, and Tamil Nadu. These are specialized zones for mining and the manufacturing of Rare Earth Permanent Magnets (REPMs)—crucial for EV motors and defense tech.
3. Overseas Acquisitions: The KABIL Factor
Khanij Bidesh India Limited (KABIL) serves as India’s “mineral hunter” abroad.
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- Argentina Success:KABIL has successfully operationalized exploration across a 15,703-hectare lithium block in Argentina’s Catamarca province.
- Expansion:Similar blueprints are being pursued in Australia and Chile. In 2026, KABIL is increasingly moving toward “equity partnerships,” where India doesn’t just buy the ore but owns a stake in the mining infrastructure itself.
4. Circular Economy: The “Urban Mining” Initiative
Recognizing that mining alone won’t meet the 2030 green energy goals, India launched a ₹1,500 crore incentive scheme in late 2025 for Critical Mineral Recycling.
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- Target:Recovering minerals like Lithium and Cobalt from end-of-life batteries and e-waste.
- Policy Support:The 2026 fiscal policy eliminated customs duties on imported battery scrap and capital goods for mineral processing to encourage domestic “urban mining.”
| Component | Primary Mechanism | Key Objective |
|---|---|---|
| International | Mineral Security Partnership (MSP) | Friend-shoring and de-risking from China. |
| Domestic | National Critical Mineral Mission | Massive exploration (1,200+ projects by 2030). |
| Asset Capture | KABIL | Direct ownership of overseas Lithium/Cobalt mines. |
| Sustainability | Recycling Incentive Scheme | Building a circular economy from e-waste. |
PROJECT VAULT
On February 2, 2026, the US announced “Project Vault,” a $12 billion initiative aimed at building a strategic stockpile of critical minerals to reduce reliance on Chinese supply chains. Funded by a $10 billion Export-Import Bank loan and private capital, this effort seeks to secure materials—including rare earths, lithium, and nickel—essential for defense and high-tech industries.
Key Aspects of Project Vault:
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- Purpose: To counter China’s control of approximately 70% of global rare earth mining and 90% of processing, shielding U.S. manufacturers from supply shocks and price volatility.
- Funding Structure: The initiative combines a 15-year, $10 billion U.S. Export-Import Bank loan with nearly $1.67 billion in private capital.
- Materials & Management:Focuses on stockpiling critical materials for technology, defense, and electric vehicles, with procurement expected to be managed by firms such as Hartree Partners, Traxys North America, and Mercuria Energy Group.
- Strategic Moves: The project includes investments in domestic miners like MP Materials and USA Rare Earth, while pursuing supply diversification with allies.
- Industry Impact: The move follows recent Chinese export restrictions and aims to bolster U.S. industrial policy, with major firms like General Motors, Stellantis, Boeing, and Google involved.
