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India’s journey toward Critical Mineral Stockpile India sovereignty takes a monumental leap forward in October 2025. The government is set to launch the National Critical Mineral Stockpile (NCMS) to secure rare earth supplies vital for electric vehicles, wind energy, and green technologies amid global supply risks. This strategic initiative arrives at a crucial juncture when China controls over 70% of global rare earth processing, leaving nations vulnerable to supply disruptions.
The stakes couldn’t be higher. India holds an estimated 7.23 million tonnes of rare earth oxide contained in 13.15 million tonnes of monazite, found mainly in coastal and inland deposits across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra. Yet despite these substantial reserves, the country contributes less than 1% to global rare earth mining.
Simultaneously, Mizoram plans a 2400 MW Darzo Lui Pumped Storage Project across Darzo Nallah, a tributary of the Tuipui River, with an estimated cost of Rs.13,948 million, featuring eight 300 MW units in an on-stream closed-loop system. These parallel developments signal India’s comprehensive approach to achieving energy independence and technological sovereignty.
This article explores how India’s critical mineral stockpile and renewable energy infrastructure will transform the nation’s position in global supply chains, reduce import dependency, and secure the resources essential for the green energy transition.
Understanding India’s National Critical Mineral Stockpile Strategy
The Genesis of NCMS
India is gearing up to launch its first National Critical Mineral Stockpile (NCMS) in 2025, creating a two-month backup of rare earth elements—those metals that power electric vehicles, wind turbines, and other green tech. This initiative represents a paradigm shift in how India approaches resource security.
The Critical Mineral Stockpile India framework emerged from the broader National Critical Mineral Mission (NCMM) launched earlier in 2025. The NCMM foresees creating a National Critical Minerals Stockpile comprising at least 5 critical minerals to mitigate risks from global supply chain disruptions.
Key Components of the Stockpile Initiative
The stockpile strategy encompasses multiple dimensions:
- Emergency reserves for two months of consumption
- Strategic partnerships with mineral-rich nations
- Domestic processing infrastructure development
- Technology transfer agreements for refining capabilities
India has released a list of 30 critical minerals, including bismuth, cobalt, copper, phosphorous, potash, rare earth elements (REE), silicon, tin, and titanium, marking a comprehensive approach beyond just rare earths.
Institutional Framework
The government has established robust mechanisms to operationalize the stockpile. The Geological Survey of India (GSI) has completed 368 critical mineral exploration projects, with 195 ongoing in 2024-25 and 227 planned for the 2025-26.
This accelerated exploration pace demonstrates the urgency India attaches to identifying and developing domestic critical mineral resources. The Ministry of Mines coordinates these efforts through a centralized mission approach.
Funding and Resource Allocation
The FY25 Union Budget removed customs duties on critical minerals to promote domestic processing and manufacturing. This fiscal measure complements the physical stockpiling strategy by making imports more economically viable during the transition period.
The government has allocated substantial resources for Critical Mineral Processing Parks and technology development initiatives. These investments aim to create an integrated ecosystem from exploration to end-product manufacturing.
The China Factor: Why Critical Mineral Security Matters Now
China’s Stranglehold on Global Supply Chains
China currently controls over 70 percent of global rare earth processing and more than half of the world’s graphite and gallium refining. This concentration creates significant geopolitical vulnerabilities for nations pursuing green energy transitions and advanced manufacturing.
The dependency extends across multiple critical minerals. India’s dependence on China for six critical minerals includes bismuth (85.6%) vital for pharmaceuticals and chemicals; Lithium (82%) core to EV batteries and energy storage; and silicon (76%), crucial for semiconductors and solar panels.
Recent Export Restrictions and Their Impact
When China restricted rare earth magnet exports in early 2025, it sent shockwaves through global supply chains, particularly affecting high-tech manufacturing. These restrictions targeted elements like terbium, lutetium, and scandium, impacting both military and commercial applications.
The Critical Mineral Stockpile India initiative responds directly to these vulnerabilities. By creating buffer stocks, India can maintain production continuity even during supply disruptions.
Strategic Vulnerability Assessment
According to the Institute for Energy Economics and Financial Analysis (IEEFA), India is almost entirely dependent on imports of lithium, cobalt, and nickel. These minerals form the backbone of electric vehicle batteries, energy storage systems, and renewable energy infrastructure.
The vulnerability extends beyond economic considerations. In an increasingly multipolar world, control over critical mineral supply chains translates directly into geopolitical leverage.
India’s Response Strategy
India’s approach combines multiple strategies:
Domestic Exploration: Aggressive geological surveys across promising regions International Partnerships: Collaborations with Australia, Africa, and Central Asian nations Recycling Infrastructure: Developing urban mining capabilities for electronic waste Technology Development: Investing in alternative materials and efficient extraction methods
The Indian government is considering private sector collaboration with IREL to accelerate rare earth element self-reliance and processing capabilities.
Mizoram’s ₹13,948 Crore Pumped Storage Revolution
Project Overview and Strategic Significance
The Government of Mizoram plans a 2400 MW Darzo Lui Pumped Storage Project across Darzo Nallah, featuring eight 300 MW units in an on-stream closed-loop system. This massive infrastructure investment represents one of India’s largest renewable energy storage initiatives in the Northeast.
Pumped storage hydroelectric projects serve as giant batteries. During off-peak hours, excess electricity pumps water to upper reservoirs. During peak demand, this water generates electricity by flowing back down through turbines.
Technical Specifications and Innovation
The Darzo Lui project incorporates cutting-edge technology:
- Eight 300 MW turbine units for modular operation
- On-stream closed-loop system minimizing environmental impact
- Darzo Nallah tributary providing ideal topography
- Advanced automation for grid stabilization
The closed-loop configuration distinguishes this from traditional hydroelectric projects. It operates independently of natural river flow patterns, functioning purely as energy storage infrastructure.
Energy Security for Northeast India
Mizoram currently relies heavily on power imports from neighboring states. This project aims to transform the state into a power-surplus region, achieving energy self-sufficiency while potentially exporting electricity.
The strategic location enables power supply to Bangladesh and other Southeast Asian nations through planned transmission interconnections. This positions Mizoram as a crucial node in regional energy cooperation.
Integration with National Grid
The project’s 2,400 MW capacity will significantly strengthen India’s renewable energy integration capabilities. As solar and wind generation expand, pumped storage becomes essential for managing grid stability and ensuring 24/7 power availability.
The global pumped hydro storage market size was more than USD 55.35 billion in 2025 and is anticipated to witness a CAGR of around 13.1%, crossing USD 189.56 billion revenue by 2035. India’s investment aligns with this global trend toward large-scale energy storage.
Economic and Social Impact
The ₹13,948 crore investment will generate substantial employment during construction and operation phases. Local communities will benefit through skill development, infrastructure improvements, and economic opportunities.
The project also advances India’s climate commitments by facilitating higher renewable energy penetration in the power grid. This supports the nation’s target of 500 GW non-fossil fuel capacity by 2030.
India’s Critical Mineral Reserves and Exploration Progress
Geological Potential and Resource Distribution
India holds an estimated 7.23 million tonnes of rare earth oxide contained in 13.15 million tonnes of monazite, found mainly in coastal and inland deposits across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra.
These reserves position India among nations with significant rare earth potential. However, converting geological potential into production capacity requires substantial investment in extraction and processing infrastructure.
Beach Sand Minerals and Monazite Processing
India’s rare earth resources occur primarily in beach sand deposits containing monazite, a rare earth-bearing mineral. These deposits stretch along the coastal regions, particularly in Kerala, Tamil Nadu, and Odisha.
The Indian Rare Earths Limited (IREL), a public sector undertaking, currently handles monazite processing. Expanding these capabilities forms a core component of the Critical Mineral Stockpile India strategy.
Exploration Acceleration Under NCMM
The Geological Survey of India (GSI) has completed 368 critical mineral exploration projects, with 195 ongoing in 2024-25, and 227 planned for 2025-26. This represents an unprecedented acceleration in exploration activities.
The exploration focus extends beyond rare earths to include:
Lithium: Prospecting in Jammu & Kashmir, Rajasthan, and Bihar Cobalt: Associated deposits with copper and nickel ores Graphite: Natural deposits in Arunachal Pradesh and Tamil Nadu Nickel: Laterite deposits in Odisha and Karnataka
Processing and Refining Challenges
Identifying reserves represents only the first step. India faces significant challenges in processing and refining critical minerals to usable forms.
Rare earth processing requires complex chemical separation processes, environmental safeguards, and technological expertise. China’s dominance stems partly from decades of investment in refining infrastructure and expertise.
India’s strategy includes:
- Critical Mineral Processing Parks with integrated infrastructure
- Technology partnerships with nations like Australia and USA
- R&D investments in efficient extraction methods
- Environmental standards ensuring sustainable processing
Private Sector Engagement
The government has opened critical mineral exploration and mining to private sector participation. This aims to accelerate development by leveraging private capital, technology, and management expertise.
Regulatory reforms include:
- Streamlined clearance processes
- Reduced revenue sharing for critical minerals
- Technology transfer incentives
- Public-private partnership frameworks
Strategic Implications for Green Technology and Manufacturing
Electric Vehicle Industry Transformation
The Critical Mineral Stockpile India directly impacts the electric vehicle (EV) sector’s growth trajectory. Lithium, cobalt, and rare earths form essential components of EV batteries, motors, and power electronics.
Securing these minerals enables:
Battery Manufacturing: Gigafactories can operate with supply certainty Cost Competitiveness: Reduced import dependence lowers production costs Technology Development: Domestic R&D in battery chemistry and materials Export Potential: Positioning India as regional EV manufacturing hub
India’s EV ambitions target 30% electric vehicle penetration by 2030. Achieving this requires stable access to critical minerals, making the stockpile strategy crucial for transportation sector transformation.
Renewable Energy Equipment Manufacturing
Wind turbines and solar panels require substantial quantities of critical minerals. Rare earths feature in permanent magnets for wind turbine generators. Silicon, silver, and other elements constitute solar photovoltaic cells.
The stockpile ensures:
- Continuous production of renewable energy equipment
- Domestic value addition in manufacturing
- Reduced import bills for clean energy infrastructure
- Export competitiveness in global markets
Electronics and Semiconductor Industry
Silicon (76%) is crucial for semiconductors and solar panels, making critical mineral security vital for India’s semiconductor manufacturing ambitions.
The government’s semiconductor mission aims to establish fabrication facilities and design ecosystems. Critical mineral availability determines the viability of these high-tech manufacturing initiatives.
Defense and Strategic Technologies
Rare earths and critical minerals feature extensively in defense applications:
- Precision-guided munitions require rare earth magnets
- Radar and communication systems use gallium and germanium
- Night vision equipment incorporates rare earth phosphors
- Jet engines and missiles contain heat-resistant alloys with critical elements
Securing these materials through the Critical Mineral Stockpile India enhances defense preparedness and reduces vulnerability to supply manipulations.
Geopolitical Positioning
India’s critical mineral strategy positions the nation as a responsible alternative to Chinese supply chain dominance. Partnerships with Africa, Central Asia, Australia, and Latin America create diversified procurement networks.
This approach aligns with global efforts by the USA, European Union, and Japan to establish resilient supply chains independent of single-source dependencies. India potentially becomes a processing and manufacturing hub serving regional markets.
Employment and Skill Development
The critical mineral ecosystem generates employment across multiple skill levels:
Geological exploration: Requires geologists, geophysicists, and field technicians Mining operations: Creates jobs in extraction, safety, and equipment operation Processing facilities: Demands chemical engineers, metallurgists, and plant operators R&D institutions: Employs researchers in materials science and technology development
The government’s skill development initiatives focus on creating specialized training programs for the critical mineral sector, ensuring workforce availability for expanding operations.
Conclusion
The launch of India’s Critical Mineral Stockpile India in 2025 marks a watershed moment in the nation’s pursuit of energy independence and technological sovereignty. Combined with Mizoram’s ₹13,948 crore pumped storage hydroelectric project, these initiatives demonstrate India’s comprehensive approach to securing both mineral resources and renewable energy infrastructure.
The establishment of the National Critical Mineral Stockpile marks a proactive step toward energy security and technological sovereignty, with global competition over critical minerals intensifying. India’s determination to secure raw materials essential for next-generation technologies positions the country advantageously in the emerging multipolar world order.
The path ahead requires sustained investment in exploration, processing infrastructure, and technology development. Success depends on coordinating efforts across government agencies, private sector participants, and international partners. The stockpile strategy provides breathing room to build these capabilities without vulnerability to supply disruptions.
As global demand for green technologies accelerates, nations controlling critical mineral supply chains will shape the 21st-century economy. India’s proactive approach through the NCMS and massive renewable energy storage projects signals its intent to be a rule-maker rather than a rule-taker in this crucial strategic domain.
The convergence of mineral security and energy infrastructure development creates a powerful synergy. Critical Mineral Stockpile India ensures material availability for manufacturing, while pumped storage projects provide the clean energy required for sustainable production. This integrated strategy positions India uniquely to capitalize on the global green energy transition while safeguarding national interests.
Frequently Asked Questions (FAQs)
Q1: What is India’s National Critical Mineral Stockpile and when will it launch?
India is gearing up to launch its first National Critical Mineral Stockpile (NCMS) in 2025, creating a two-month backup of rare earth elements that power electric vehicles, wind turbines, and other green tech. The stockpile aims to protect against supply disruptions.
Q2: Why does India need a Critical Mineral Stockpile?
China currently controls over 70 percent of global rare earth processing and more than half of the world’s graphite and gallium refining, creating strategic vulnerabilities. The stockpile provides supply security for India’s manufacturing and green energy sectors.
Q3: What is the Mizoram pumped storage hydro project?
Mizoram plans a 2400 MW Darzo Lui Pumped Storage Project with an estimated cost of Rs.13,948 million, featuring eight 300 MW units in an on-stream closed-loop system. This project targets energy self-sufficiency for the state.
Q4: How much rare earth reserves does India have?
India holds an estimated 7.23 million tonnes of rare earth oxide contained in 13.15 million tonnes of monazite, found mainly in coastal and inland deposits across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra.
Q5: Which critical minerals is India most dependent on China for?
India depends on China for six critical minerals: Bismuth (85.6%) vital for pharmaceuticals, Lithium (82%) core to EV batteries, and Silicon (76%) crucial for semiconductors, among others, necessitating the stockpile strategy.
Q6: How many critical mineral exploration projects are underway in India?
The Geological Survey of India (GSI) has completed 368 critical mineral exploration projects, with 195 ongoing in 2024-25, and 227 planned for 2025-26, demonstrating accelerated exploration efforts.
Q7: What is the global market size for pumped hydro storage?
The global pumped hydro storage market size was more than USD 55.35 billion in 2025 and is anticipated to witness a CAGR of around 13.1%, crossing USD 189.56 billion revenue by 2035, indicating strong growth potential.
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