Maarg Manthan · Topic 19.12

National Critical Mineral Mission

Current Affairs & Government Schemes › National Missions and Flagship Programmes · Topic 19.12

The National Critical Mineral Mission (NCMM) is a mission of the Ministry of Mines, approved by the Union Cabinet on 29 January 2025, to make India self-reliant in critical minerals such as lithium, cobalt, nickel, graphite and rare earth elements. It has an outlay of Rs 16,300 crore from the Government and an expected investment of about Rs 18,000 crore from public sector undertakings, over seven years from 2024-25 to 2030-31. The mission covers the whole value chain, from exploration and mining to processing, recycling, stockpiling and overseas assets, and it builds on the 2023 amendment to the Mines and Minerals Act that opened critical mineral blocks for auction.

6 min read · UPSC Prelims · Current Affairs & Government Schemes · National Missions and Flagship Programmes

At a Glance

Approved 29 January 2025, Union Cabinet
Ministry Ministry of Mines
Outlay Rs 16,300 crore plus about Rs 18,000 crore PSU investment
Period 2024-25 to 2030-31
Scope Exploration, mining, processing, recycling, stockpile, overseas assets
Exam link UPSC Prelims, Current Affairs and Government Schemes: National Missions and Flagship Programmes

Where Does It Fit?

This topic is the third science and resource mission of the macro. It links with the Deep Ocean Mission through seabed nodules and with clean energy goals through batteries and solar equipment. The legal base was set by the Mines and Minerals (Development and Regulation) Amendment Act, 2023. Previous topic: Deep Ocean Mission (Samudrayaan and Matsya-6000). Next topic: Rashtriya Gokul Mission (Indigenous Cattle Breed Development).

What Does the National Critical Mineral Mission Include?

Pillar	Measure
Exploration	Large exploration programme by the Geological Survey of India and others, reported at 1,200 projects up to 2030-31
Auctions	Auction of critical mineral blocks by the Centre and states, supported by the 2023 amendment of the Mines and Minerals Act
Processing	Mineral processing parks and incentives for beneficiation and refining in India
Recycling	A recycling incentive scheme of Rs 1,500 crore, as reported, for recovery of critical minerals from e-waste and used batteries
Overseas assets	Acquisition of mines abroad through Khanij Bidesh India Limited and public sector companies
Strategic stockpile	Building a National Critical Mineral Stockpile for supply shocks

Why Are Critical Minerals Important and What Is the Legal Base?

Meaning: critical minerals are those that are essential for the economy or for national security but whose supply is at risk because it is concentrated in a few countries
Indian list: an expert committee of the Ministry of Mines identified 30 critical minerals in 2023, including lithium, cobalt, nickel, graphite, rare earth elements, antimony, gallium and tellurium
Legal base: the Mines and Minerals (Development and Regulation) Amendment Act, 2023, covered in The Mines and Minerals (Development and Regulation) Amendment Act, 2023, added 24 minerals to a schedule of critical and strategic minerals and let the Centre auction their blocks
Uses: batteries for electric vehicles, solar panels, wind turbines, semiconductors, electronics and defence equipment
Supply risk: China dominates refining of many such minerals and its export curbs on rare earths and some other items in 2025 raised concern in importing countries, as reported
Import dependence: India imports most of its lithium, cobalt and nickel needs, as reported by the Ministry of Mines
Net zero link: India aims for net zero by 2070, so the energy transition needs a steady supply of these minerals
Institutions: Geological Survey of India, Mineral Exploration and Consultancy Limited and the Ministry of Mines lead exploration and policy

What Else Should You Remember?

KABIL: Khanij Bidesh India Limited, formed in 2019 as a joint venture of NALCO, Hindustan Copper and Mineral Exploration and Consultancy Limited to acquire mineral assets abroad. It signed an agreement for lithium exploration blocks in Catamarca, Argentina, in January 2024
Rare earth elements: a group of 17 elements with magnetic and optical use. Indian Rare Earths Limited mines beach sand minerals in India
Centres of excellence: the mission supports research in processing and recycling and aims to build skills
Trade partnerships: India has joined the Minerals Security Partnership and has agreements with countries such as Australia, Chile and Argentina for mineral supply
Auction record: several tranches of critical mineral blocks were auctioned since 2023, but many blocks drew few bids, which shows the need for better data
Environmental cost: mining and processing can harm forests, water and local people, so environmental clearance and community consent need strong checks
Compare with seabed minerals: deep-sea nodules are another possible source, as in Deep Ocean Mission (Samudrayaan and Matsya-6000)
Funding structure: the Rs 16,300 crore is the Government share, and the Rs 18,000 crore is expected investment by public sector companies. Some reports add them and give a headline of Rs 34,300 crore, so read the question carefully
Latest status: the mission is in its implementation phase, and the recycling incentive scheme was approved after the mission. Check the Ministry of Mines for updates on blocks auctioned and projects started
Critique: private firms need price support and long-term offtake certainty, and technology for refining is largely held abroad

Why Does It Matter for the Exam?

Approval and ministry: 29 January 2025, Ministry of Mines
Numbers: Rs 16,300 crore Government outlay and about Rs 18,000 crore PSU investment
KABIL: formed in 2019, acquires assets abroad, lithium blocks in Argentina
Critical minerals list: 30 minerals identified in 2023, with lithium, cobalt and rare earths as common examples
Common errors: adding the two amounts as the Government outlay, or calling KABIL a private firm

As an analytical point, critical minerals are a strategic asset for energy security. The mission has the right range of tools, but success needs good geological data, faster clearances with sound environmental checks and technology partnerships for refining.

Why Is This Topic Important?

Energy security Batteries and clean energy
Facts Outlay, KABIL, list
Diplomacy Resource partnerships

What Came Next?

The next topic covers the Rashtriya Gokul Mission for indigenous cattle breeds. Next topic: Rashtriya Gokul Mission (Indigenous Cattle Breed Development).

Key People and Terms

NCMM National Critical Mineral Mission
KABIL Khanij Bidesh India Limited
REE Rare earth elements
Beneficiation Improving ore quality
Stockpile Reserve for supply shocks
MMDR Act Mines and Minerals (Development and Regulation) Act

Exam Corner

Points to Remember

Approved 29 January 2025.
Government outlay Rs 16,300 crore; PSU investment about Rs 18,000 crore.
Period 2024-25 to 2030-31.
Ministry of Mines.
KABIL acquires overseas assets.

Do Not Confuse With

Critical minerals and strategic minerals Supply-risk minerals versus minerals tied to defence and nuclear use
NCMM and MMDR Act A mission versus a law
KABIL and Coal India Overseas mineral company versus a domestic coal producer

Memory Hook

Explore, mine, process, recycle, stock and buy abroad: seven years to secure the lode.

Mains Angle

Questions ask why critical minerals matter and how to secure supply. These points give a balanced frame.

Importance Energy transition, defence, electronics
Challenges Imports, refining, environment
Way forward Exploration data, recycling, partnerships

A Question You May Face

An original practice question, not a past paper question.

“Why are critical minerals important for India’s energy transition? Examine the measures under the National Critical Mineral Mission to secure their supply.”

How to Answer

Context Energy transition and supply risk.
Mission Exploration to recycling.
Benefits Self-reliance.
Challenges Refining and environment.
Way Data and partnerships.

GS Relevance

Prelims: outlay, ministry, list of critical minerals, KABIL. GS Paper 3: mineral resources, energy security, industrial policy, science and technology. GS Paper 2: international relations in resource diplomacy.

Frequently Asked Questions

What is the National Critical Mineral Mission?

The National Critical Mineral Mission (NCMM) is a Ministry of Mines mission approved on 29 January 2025 with a Government outlay of Rs 16,300 crore and expected public sector investment of about Rs 18,000 crore, for 2024-25 to 2030-31. It aims to secure supply of minerals such as lithium, cobalt, nickel and rare earths.

Which ministry runs the National Critical Mineral Mission?

The Ministry of Mines runs the mission. The Geological Survey of India and other agencies handle exploration, while Khanij Bidesh India Limited acquires mineral assets abroad. The legal base is the Mines and Minerals (Development and Regulation) Amendment Act, 2023, which allows the Centre to auction critical mineral blocks.

What are critical minerals?

Critical minerals are minerals that are essential for the economy or national security but have supply risks because production or refining is concentrated in a few countries. An expert committee of the Ministry of Mines listed 30 critical minerals for India in 2023, including lithium, cobalt, nickel, graphite and rare earth elements.

What is KABIL?

Khanij Bidesh India Limited (KABIL) was formed in 2019 as a joint venture of NALCO, Hindustan Copper and Mineral Exploration and Consultancy Limited to acquire strategic mineral assets abroad. It signed a deal for lithium exploration blocks in Catamarca, Argentina, in January 2024, and it is a key tool under the mission.

What is the latest status of the National Critical Mineral Mission?

The mission is in implementation. A recycling incentive scheme of about Rs 1,500 crore was approved as part of it, as reported, and auctions of critical mineral blocks continue under the 2023 law. Figures on blocks auctioned and projects started change often, so the latest Ministry of Mines release should be checked.

PYQ Practice — Statement Analysis

1 The National Critical Mineral Mission is run by the Ministry of Mines.

True

It was approved in January 2025.

2 KABIL is a private company.

False

It is a joint venture of public sector companies.

3 Lithium is a critical mineral for India.