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Critical Minerals: India’s Next Strategic Metals Opportunity

ICICIdirect Research 21 Aug 2026 DISCLAIMER

PM in its independence speech highlighted country penchant for domestic production of critical minerals to safeguard itself against global volatility given the majority are currently imported.
Critical minerals are fast emerging as the “new oil” of the energy transition and advanced manufacturing economy. Lithium, graphite, cobalt, nickel, rare earth elements (REEs), copper, tungsten, vanadium and gallium are critical inputs for EV batteries, permanent magnets, renewable energy, power grids, semiconductors, aerospace and Defence.
The government has identified 30 critical minerals, of which 24 have been classified as critical and strategic minerals under the MMDR Act
To strengthen the domestic critical-mineral value chain, the Government has launched the National Critical Mineral Mission with an outlay of ₹16,300 crore, alongside an expected ₹18,000 crore investment from PSUs and other stakeholders, taking the overall envisaged investment to ~₹34,300 crore.
The mission covers the entire value chain: Exploration → Mining → Beneficiation → Processing → Recycling → Overseas asset acquisition
Also, the government is also promoting overseas resource acquisition, with around ₹5,600 crore earmarked for overseas exploration, while companies such as Coal India, NMDC, NALCO and Hindustan Copper scouting for critical-mineral opportunities internationally.
The mission targets 1,200 domestic exploration projects by FY31, with an objective of establishing domestic production of at least 15 critical minerals.
However, execution challenges remain, with around 57 critical and strategic mineral blocks cancelled across the first six tranches, reflecting concerns around technical complexities, high capital requirements, and regulatory uncertainties.
Key beneficiaries: The government’s focus on domestic development and overseas acquisitions is positive for long-term mineral security, with Coal India, NMDC, Hindustan Zinc and Vedanta expanding their critical-mineral portfolios, while KABIL, the NALCO-Hindustan Copper JV, has acquired lithium assets in Argentina.

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