Lithium and Strategic Minerals
Geography › Mineral and Energy Resources · Topic 21.12
Lithium and rare earth elements are strategic minerals, essential for batteries, electric motors, wind turbines, electronics and defence, and supplied by very few countries. Lithium comes from brines and hard rock, mostly in Australia, Chile, Argentina and China; rare earths come mostly from China, which also dominates their processing. India has inferred lithium in Reasi, Jammu and Kashmir, rare earths in monazite sands and Balotra in Rajasthan, and is building a critical minerals mission.
5 min read · UPSC Prelims · Geography · Mineral and Energy Resources
At a Glance
- Lithium sources Brines, hard rock (spodumene), clays
- Lithium triangle Chile, Argentina, Bolivia
- Rare earths 17 elements; China dominates
- Indian finds Reasi lithium; Balotra rare earth
- Indian monazite Kerala, Tamil Nadu, Odisha beaches
- Exam link UPSC Prelims, Geography: Mineral and Energy Resources
Where Does It Fit?
This is the twelfth topic of the macro on mineral and energy resources. The previous topics covered metals that are mined in India or imported; this one covers the new-age minerals on which batteries and electronics depend. The next topic covers graphite and diamond. Previous topic: Copper. Next topic: Graphite and Diamond.
What Are Strategic and Critical Minerals?
In short: they are minerals that modern technology cannot do without and that few countries supply.
| Mineral | Uses | Main sources |
|---|---|---|
| Lithium | Rechargeable batteries for phones and electric vehicles, grid storage, glass, ceramics | Australia (spodumene, a hard rock mineral), Chile and Argentina (salt lake brines), China; the lithium triangle of Chile, Argentina and Bolivia holds more than half of the world’s resources |
| Rare earth elements | Seventeen metals, including neodymium, dysprosium and cerium, used in powerful permanent magnets for electric vehicle motors and wind turbines, phones, lasers, defence systems and catalysts | China produces most of the world’s rare earths and processes about nine-tenths of them; Myanmar, the United States, Australia and others are smaller producers |
| Others | Gallium and germanium (chips and solar), graphite (battery anodes), cobalt, nickel, platinum group metals and silicon | Concentrated in China, the Democratic Republic of the Congo, South Africa, Indonesia and a few others |
A critical mineral is one whose supply is at risk and whose loss would damage the economy or security. India published a list of thirty critical minerals in 2023, including lithium, cobalt, nickel, graphite and rare earth elements, as in Tungsten, Nickel, Molybdenum and Cobalt. Control over mining and above all processing gives a country economic leverage: China’s curbs on exports of some rare earths and magnets in 2025 hurt industries around the world.
What Does India Have?
- Lithium: the Geological Survey of India reported an inferred resource of about 5.9 million tonnes of lithium at Salal–Haimana in Reasi district, Jammu and Kashmir, in 2023, as clay-type deposits at an early stage of exploration; the first auction of the blocks drew little interest, and a smaller, early-stage resource has been found in Mandya, Karnataka. These are exploration-stage finds, not mines, and recovery from clay and the economics need to be proven.
- Rare earths: India has large reserves of monazite in beach sands of Kerala, Tamil Nadu, Odisha and Andhra Pradesh, which also contain thorium. Indian Rare Earths Limited, a public sector firm, mines and processes the sands at Chavara in Kerala (Keralam), Manavalakurichi in Tamil Nadu and Chhatrapur in Odisha. A rare earth oxide resource of over 100,000 tonnes was reported at Balotra in Rajasthan.
- Policy: the Mines and Minerals Act was amended in 2023 to allow auctions of critical mineral blocks and private exploration. The National Critical Mineral Mission of 2025 aims to explore, process, recycle and acquire assets abroad, and there is a scheme for rare earth magnets. The mission’s outlay is quoted differently in different reports, so the official figure should be checked.
- Abroad: Khanij Bidesh India Limited, KABIL, has acquired lithium exploration blocks in Argentina’s Catamarca province and has talks with Australia and Chile, and India joined the Minerals Security Partnership.
What Are the Issues?
- Processing gap: India has neither the refining capacity nor the magnet industry to use its resources, and depends on imports of cathode materials and magnets, mainly from China.
- Environment: brine mining uses large amounts of water in dry areas such as the Atacama, and hard rock mining and processing create waste, as in Mining and Quarrying.
- Radioactivity: monazite contains thorium, so mining and export of the sands are controlled under atomic energy law, and Indian policy limited private participation in beach sand minerals.
- Geopolitics: the countries that hold the resources are asserting more control through export bans and local processing rules, so India seeks partnerships, stockpiles and recycling.
As an analytical point, resource nationalism and supply-chain concentration are the new geography of energy. For India the pathway is not only to find more lithium or rare earth, but to build the middle of the value chain: separation, refining, magnet and cell manufacture, and recycling of used batteries, while diversifying imports through the strategic partnerships mentioned above.
Why Is This Topic Important?
- Current affairs Critical minerals in news
- Facts Lithium and rare earths
- Security China dependence
What Came Next?
The next topic describes graphite and diamond. Next topic: Graphite and Diamond.
Key People and Terms
- Critical mineral Vital mineral with supply risk
- Rare earth elements Seventeen special metals
- Monazite Rare earth and thorium sand
- Spodumene Lithium hard rock mineral
- Brine Salt lake lithium source
- KABIL Khanij Bidesh India Limited
Exam Corner
Points to Remember
- Lithium triangle: Chile, Argentina, Bolivia.
- Salal–Haimana in Reasi has inferred lithium.
- Monazite has rare earths and thorium.
- China dominates rare earth processing.
- India’s list has 30 critical minerals.
Do Not Confuse With
- Reserve and inferred resource Proven minable versus early estimate
- Rare earth and rare metals Seventeen related elements versus any scarce metal
- Monazite and zircon Rare earth sand versus zirconium sand
Memory Hook
Lithium for the cell, rare earths for the motor; the triangle in the Andes, the processing in China, the hope in Reasi.
Mains Angle
Questions ask about critical minerals and strategy. These points add depth.
- Role Energy transition
- Risk Concentrated supply
- Response Mission, abroad, recycling
A Question You May Face
An original practice question, not a past paper question.
“What are critical minerals? Discuss India’s resource base and the strategic options for securing them.”
How to Answer
- Define Critical and strategic.
- World Concentration.
- India Finds and gaps.
- Options Mission, partners, recycling.
GS Relevance
Frequently Asked Questions
What is the lithium triangle?
The lithium triangle is the region where Chile, Argentina and Bolivia meet in the high Andes, with salt flats that hold more than half of the world's known lithium resources in brine. Lithium from here is used in batteries for phones and electric vehicles, though Australia mines the most from hard rock.
Where was lithium found in India?
Lithium was found at Salal–Haimana in Reasi district of Jammu and Kashmir, where the Geological Survey of India reported an inferred resource of about 5.9 million tonnes in 2023, and a smaller occurrence at Mandya in Karnataka. Both are at an early stage, and extraction from clay still has to be proven.
What are rare earth elements?
Rare earth elements are seventeen metals, including neodymium and dysprosium, that are used in strong magnets for electric vehicle motors and wind turbines, as well as in phones, lasers and defence equipment. They are not very rare in the crust, but are difficult to mine and separate, and China dominates processing.
What is monazite and where is it found in India?
Monazite is a mineral in beach sands that contains rare earth elements and thorium. India has large monazite reserves in the beach sands of Kerala, Tamil Nadu, Odisha and Andhra Pradesh, mined by Indian Rare Earths Limited, with controls because of its radioactivity.
What is the National Critical Mineral Mission?
The National Critical Mineral Mission, launched in 2025, aims to secure India's supply of critical minerals through exploration, auctions of blocks, processing, recycling and acquisition of mineral assets abroad by KABIL. The scale of its funding is reported differently, so the official outlay should be checked.
PYQ Practice — Statement Analysis
1 Salal–Haimana in Jammu and Kashmir is a lithium find.
An inferred resource in Reasi district.
2 Monazite is a source of rare earth elements.
It also contains thorium.
3 India is the largest processor of rare earth elements.
China dominates processing.
4 The lithium triangle includes Chile, Argentina and Bolivia.
High Andean salt flats.
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