The tough race for critical minerals

While the auction of mines has attracted high bids, just how many of these mines will actually be commercially viable remains to be seen

- SAKET KUMAR

From the US to China, countries around the world are racing to secure supplies of critical minerals that help power everything from electric cars and renewable energy to advanced electronics and modern defence applications.

India, which has substantial deposits, has already announced a National Critical Minerals Mission, having auctioned 34 mines — or blocks — so far across five tranches. But its path to self-reliance in this crucial sector is riddled with challenges.

For starters, some blocks have triggered surprisingly aggressive bidding in spite of the fact that these mines are only offered for shallow exploration. This has raised concerns around viability. Then there remains the need to boost processing facilities as well as production timelines.

China’s recent sudden tightening of rare earth exports has come as a wake-up call for countries seeking to diversify sources of critical minerals. The episode underscored how vulnerable nations remain to geopolitical shocks, and why building self-sufficiency in critical minerals like lithium, graphite, nickel and rare earth elements has become a strategic priority. India’s National Critical Mineral Mission, acceleration of auctions, deeper exploration efforts and rule changes stem directly from this global push: the recognition that without secure access to critical minerals, ambitions in electric mobility, electronics, defence and renewable energy will remain exposed.