NEW DELHI: Metals like lithium, cobalt, nickel, copper, and rare earth elements are becoming critical for the global shift to a low-carbon economy, according to the Economic Survey released on Friday.
The survey noted that these metals play a major role in energy security, industrial competitiveness, and geopolitical influence. Copper, in particular, is facing price volatility due to mine outages in countries such as Indonesia, Congo, and Chile, rising global demand from the power and data sectors, and trade restrictions by exporting nations.
The survey also warned that the world may face a shortage of copper at the current rate of rising power demand, partly driven by the rapid growth of AI data centres.
In response, advanced economies are promoting standards-based critical mineral markets, focusing on sustainability, traceability, and governance. Initiatives such as the G7 Roadmap to Promote Standards-Based Markets for Critical Minerals aim to enhance transparency, reduce concentration risks, and encourage responsible sourcing.
The survey emphasized that resource-rich regions in Africa, Latin America, and Asia should be treated as co-producers of value rather than merely sources of raw materials. This requires international cooperation on technology transfer, skill development, institutional support, and investment in mining, processing, and recycling.
The survey mentioned that India’s approach seeks to balance strategic autonomy with global integration. The country has launched the National Critical Mineral Mission (NCMM) to strengthen domestic capabilities, secure mineral supply chains, and promote value addition, while also engaging in international partnerships such as the Minerals Security Partnership and the Indo-Pacific Economic Framework.
Under the NCMM, the government aims to secure both domestic and foreign sourcing of critical minerals and develop robust value chains. Amendments to the Mines and Minerals (Development and Regulation) Act, 2023, have expanded central government powers to auction 24 of 30 identified critical minerals and opened six previously restricted minerals to private sector participation. The amendments came into effect from September 1, 2025.
India’s government-owned Khanij Bidesh India Ltd. (KABIL) has acquired 15,703 hectares in Argentina for lithium mining, alongside partnerships in Australia and Chile. Further, the Union Cabinet approved the NCMM on January 29, 2025, with a financial outlay of ₹16,300 crore and expected investment of ₹18,000 crore from PSUs and other stakeholders. The mission aims to secure a long-term, sustainable supply of critical minerals and strengthen India’s value chains across all stages—from mineral exploration and mining to beneficiation, processing, and recovery from end-of-life products.