Critical Minerals is a concept referring to non-fuel metallic or non-metallic elements essential for modern technologies, economic growth, and national security, which also face high supply disruption risks. The classification is tailored by individual nations based on their strategic priorities. The origin of the concept can be traced back to World War I, when the United States created a list of materials deemed "critical" for weaponry supplies. Today, the focus is on securing supply chains for the energy transition and high-tech sectors.
In India, the Ministry of Mines identified 30 critical minerals in 2022, including lithium, cobalt, and Rare Earth Elements (REEs). The mechanism for their exploration and mining is governed by the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). A major recent change was the enactment of the MMDR Amendment Act, 2023, which came into effect on August 17, 2023. This amendment empowers the Central Government to exclusively auction mineral concessions for critical minerals. Crucially, it removed six minerals (including lithium, niobium, and titanium) from the list of 12 atomic minerals in Part-B of the First Schedule of the MMDR Act, opening them to private sector exploration. The Act also introduced the Exploration Licence (EL) to attract private investment in deep-seated mineral exploration.
The policy connects directly to India's goal of achieving net-zero emissions by 2070 and reducing import dependence. Related institutions include the National Critical Mineral Mission (NCMM), approved on January 29, 2025, and the international Mineral Security Partnership (MSP), which India joined in June 2023.