What’s Next For India's Mineral Power Play In 2025

With the race intensifying globally to secure vital minerals for renewable energy and emerging technologies, India has been laying the foundation to bolster its critical mineral wealth in 2024.

As the year comes to a close, we ask: What does 2025 hold for India’s strategic mineral ambitions?

Before looking ahead, here’s a brief recap of the key milestones in 2024.

Four Rounds, 24 Blocks

This year, India auctioned off 24 critical and strategic mineral blocks in four rounds. Notable among these were the first-ever tungsten, cobalt, and lithium blocks.

Hindustan Zinc Limited, a Vedanta Group subsidiary, emerged as the top bidder, securing mining rights for two tungsten blocks — one in Nayakkarpatti, Tamil Nadu, and the other in Balepalyam, Andhra Pradesh.

Vedanta also secured a cobalt block in Shivamogga, Karnataka, cementing its position in India’s critical mineral exploration.

Meanwhile, Kolkata-based Maiki South Mining Private Limited obtained the licence to explore the Katghora lithium block in Chhattisgarh, adding momentum to the nation’s growing mineral ambitions.

Beyond the Shores

November 2024 marked a watershed moment as India launched its first-ever auction of 13 offshore mineral blocks.

Featuring lime mud, construction sand, and polymetallic nodules and crusts, the auction marked India’s entry into the exploration and development of undersea mineral resources within its exclusive economic zone (EEZ).

Typically, offshore mining or deep-sea mining refers to extracting mineral deposits from the ocean below 200 metres — the deep seabed. India’s offshore mineral reserves include gold, diamonds, copper, nickel, cobalt, manganese, and rare earth elements.

The blocks are strategically located off the coasts of Gujarat and Kerala in the Arabian Sea, as well as near the Great Nicobar Island in the Andaman Sea.

Golden Handshake

As India’s domestic critical mineral blocks remain in the preliminary stages of exploration, their full commercial potential is unlikely to fully accrue this decade.

Recognising the threat of potential future supply shocks, the government has ramped up efforts to acquire overseas assets from key resource-rich regions as a parallel measure to bolster mineral security.

The first such mine, for lithium brine, was acquired in Argentina this year by Khanij Bidesh India Limited (KABIL), a joint venture of NALCO, Hindustan Copper, and Mineral Exploration Company.

Through a strategic agreement with CAMYEN, Argentina’s state-owned enterprise, KABIL gained exploration rights for five lithium brine blocks in Catamarca province, paving the way for India’s global footprint in critical minerals.

Further amplifying its international ambitions, the government tasked Coal India, NMDC, and ONGC Videsh Ltd (OVL) to actively pursue critical mineral assets overseas.

Earlier, in March 2024, India applied to the International Seabed Authority (ISBA), Jamaica, for permission to explore the cobalt-rich Afanasy Nikitin Seamount, located in the central Indian Ocean, east of the Maldives and about 1,350 kilometres (km) from the Indian coast.

However, competing claims by Sri Lanka have paused India’s application, highlighting the geopolitical complexities surrounding critical minerals.

The Controversial Block

But it hasn't been smooth sailing all the way.

A fierce political battle erupted between the Centre and Tamil Nadu over the Nayakkarpatti tungsten block in Madurai.

Tamil Nadu Chief Minister M K Stalin has thrown down the gauntlet, vehemently opposing the Union government’s move, declaring that no mining — tungsten or otherwise — will be allowed in the area.

Through a series of letters, posts on the social platform X, and a special resolution in the state's legislative assembly, Stalin has urged Prime Minister Narendra Modi to revoke the mining rights for the Nayakkarpatti tungsten block, stressing that no bids should be floated without the state’s explicit consent.

As tensions rise, the Centre has stepped in to defuse the situation. It has asked the Geological Survey of India (GSI) to examine the possibility of redefining the block’s boundaries to exclude the heritage site.

Additionally, the Tamil Nadu government has been requested to delay issuing the letter of intent to Hindustan Zinc Limited, the preferred bidder, until a resolution is reached.

A Missed Opportunity

India’s bid to auction the Reasi lithium block in Jammu and Kashmir hit a major snag, with the auction being cancelled twice due to weak investor interest.

The lithium reserves, discovered serendipitously by the GSI during its limestone exploration in 2023, were hailed as a game-changer for India's self-reliance in critical minerals. Pegged at an impressive 5.9 million tonnes, the find sparked optimism and urgency to fast-track its development.

However, the lack of investor confidence in the region has stalled progress, dimming the initial excitement and leaving the government grappling with how to unlock the value of this "lucky" discovery.

The Dragon’s Grip

In 2023, the Ministry of Mines identified 30 critical minerals deemed essential for India’s economic growth and national security, launching a bold pursuit to achieve self-sufficiency.

However, a more pressing issue remains largely unaddressed — India’s heavy reliance on China for these vital resources.

A report from The Hindu reveals India’s vulnerability, showing that for six critical minerals, dependence on Chinese supplies exceeds 40 per cent: bismuth (85.6 per cent), lithium (82 per cent), silicon (76 per cent), titanium (50.6 per cent), tellurium (48.8 per cent), and graphite (42.4 per cent).

Despite being rich in mineral resources, India faces significant structural challenges in its mining and processing ecosystem. While the government focusses on securing more mineral deposits, incentives and policy support for developing domestic processing capabilities remain inadequate.

It should be remembered that China’s unparalleled dominance in critical minerals extends beyond reserves to include processing and refining. China controls 87 per cent of rare earth processing, 58 per cent of lithium refining, and 68 per cent of silicon processing, leaving India at a strategic disadvantage.

Looking Ahead to 2025

India’s quest for critical minerals has only just begun. With less than 10 per cent of its potential strategic mineral reserves explored, India must ramp up efforts to locate and secure these essential resources.

That said, the new year will be crucial for turning the dream of self-sufficiency into reality.

For starters, the government must focus on supporting successful bidders in the critical mineral auctions and accelerate the process of getting mining operations off the ground.

Next, India must build a robust framework of policies and international alliances, recognising that critical minerals are the new lifeblood of the twenty-first-century economy.

Finally, the government must ensure that offshore mining auctions are a success, tapping into the vast untapped resources beneath the oceans.

Alongside these efforts, all eyes will be on the launch of the Critical Mineral Mission — a collaborative initiative to unite ministries, industries, research institutions, and global think tanks to secure a sustainable supply of the minerals that will power the future.

Presenting the first budget of the National Democratic Alliance (NDA) government’s third term, Finance Minister Nirmala Sitharaman had announced the setting up of the Critical Mineral Mission for domestic production, recycling, and overseas acquisition of such mineral assets.

India has begun to piece together the framework for securing its critical mineral future, but it hasn’t yet reached the scale needed to truly compete on the global stage.

The year 2025 will be one that tests whether we have the staying power to see this vision through.