Beyond Self-reliance: India’s International Partnerships on Critical Minerals

This blog series maps and surveys the growing number of India’s international partnerships in the critical minerals space, providing readers with a repository of primary sources. It examines various partnerships India has inked or is in the process of pursuing with key nations, international organisations, and intergovernmental frameworks. 

These engagements reflect India’s realisation that the quest for self-reliance and domestic initiatives to explore critical minerals must be complemented with a foreign policy focused on international cooperation.

These engagements reflect India’s realisation that the quest for self-reliance and domestic initiatives to explore critical minerals must be complemented with a foreign policy focused on international cooperation with key partners on sourcing, processing, and de-risking global supply chains. More than just a risk or challenge, some Indian policymakers see this as a lever to achieve the country’s 2047 Viksit Bharat development vision. For example, for B. V. R. Subramanyam, the CEO of the Indian government’s policy think tank, NITI Aayog, climate change offers an opportunity for India to become a leader in climate technology.

As part of CSEP’s research informing an Indian strategy for critical minerals, under the verticals of Mining and Non-Fuel Minerals and Foreign Policy and Security studies, this  series of articles offers a) a comprehensive, accessible reference on how India is working with global partners to secure the minerals essential for its future; b) initial insights on the utility of these international partnerships for India to achieve its climate transition goals; and c) preliminary assessments of whether, where and how India should position itself in the global supply chain of critical minerals given its foreign and economic policy interests.

As the global rush to secure critical minerals intensifies, nations are rapidly forming international partnerships to build resilient supply chains for these resources, which are essential for the green transition and technological advancements. Critical minerals like lithium, cobalt, and rare earth elements are vital for renewable energy technologies, electric vehicles, advanced manufacturing, and digital infrastructure. They are also emerging as crucial elements for national security. However, as demand for these materials surges, so does the geopolitical competition to control and secure sustainable supply chains. Given their significance, countries are now embedding access to these minerals into their economic security and foreign policy strategies. 

For India, which has set ambitious goals for decarbonisation and green energy transition, securing these minerals is not just important but indispensable. With limited domestic reserves of critical minerals, India must rely on international cooperation to ensure steady, long-term access to these key resources. As part of its broader approach, India has entered various bilateral, minilateral, and multilateral agreements to strengthen critical mineral supply chains and foster resilience. 

For nations like India, the path to becoming a leader in clean energy and technology requires reliable access to critical minerals. As countries rush to develop and join partnerships, it is important to take stock of what has already been done on this front. That, in turn, will help answer the necessary question of how countries can work with international partners to secure the flow of these vital resources.

There is no universal definition for critical minerals as they are usually identified based on country-specific demands and needs. Yet, for most countries, minerals having high economic importance coupled with high supply risks are identified as critical minerals. Countries have undertaken various steps to ensure domestic mineral security, yet no country or region can become self-sufficient along the full range of the value chains of these minerals essential for the energy transition. International partnerships therefore become an important track to ensure viable and resilient access to these minerals.

The Contested Geopolitics of Critical Minerals

As emerging economies like India ramp up efforts to reduce emissions, they must also ensure that energy systems remain resilient and secure. Critical minerals, essential to a decarbonising energy landscape, are increasingly concentrated in a few geographic regions, such as Africa or Latin America, making them a source of geopolitical competition. 

This concentration heightens the risk of supply chain disruptions, making policymakers confront new vulnerabilities, especially for countries lacking in reserves. Issues such as price volatility, supply security, and geopolitical tensions persist, even as energy systems move away from fossil fuels towards electrification and renewable technologies.

Geopolitical development such as the COVID-19 pandemic, the Ukraine war, US-China geopolitical rivalry, and the shift towards protectionist industrial policies in various countries have exacerbated the urgency to secure supply chains. Coupled with the looming climate crisis and the drive towards net-zero, the need to ensure stable access to critical minerals has become even more pronounced. 

Recognising Chinese dominance in mining and processing of many of these critical minerals, specifically Rare Earth Elements (REEs), graphite, manganese and others, has been one of the driving forces for countries to diversify supply chains. It presently accounts for approximately 60% of production and 85% of processing capacity of critical minerals globally. Similarly, countries like Australia, the Democratic Republic of the Congo (DRC), and Chile are the leading producers of lithium, cobalt, and nickel respectively.

This concentration creates strategic vulnerabilities for other nations, especially those looking to build industries based on clean energy and technology. Supply disruptions through export bans such as the one China levied on REEs in 2010 during a diplomatic spat with Japan, can cripple entire sectors. The 2023 import restrictions levied on gallium and germanium also impacted economies in the European Union (EU). This demonstrated how access to these minerals can quickly turn into a tool of geopolitical leverage. As countries like India seek to secure their future industrial capabilities, they must reckon with this concentration of supply, making international cooperation all the more crucial. Countries are now weary of monopolisation of supply chains and are therefore pushing for diversification.

Furthermore, the transition to renewable energy is set to intensify the global demand for critical minerals. The International Energy Agency (IEA) projects that the world’s demand for lithium could increase by over 40 times by 2040 if global climate goals are met. Similar surges in demand are expected for cobalt, nickel, and rare earth elements.

The rapid increase in demand is expected to further strain supply chains, leading to increased competition between nations and potential market instability. To avoid being left behind, India must secure long-term partnerships with mineral-rich countries and international organisations that can provide stable access to these resources.

India’s Growing International Engagements on Critical Minerals

India has in recent years taken a series of significant steps to ensure its access to a resilient supply of critical minerals, which are essential for the country’s green energy transition and industrial growth. However, much of public policy attention and research has focused on the domestic landscape, reflecting the primary initiative of the Ministry of Mines. Less is known about the international dimension, where the Indian government has inserted critical minerals into different partnerships, including through related issue areas such as green technology, resilient supply chains, energy security, climate transition, trade and defence.

Less is known about the international dimension, where the Indian government has inserted critical minerals into different partnerships, including through related issue areas such as green technology, resilient supply chains, energy security, climate transition, trade and defence.

In June 2023, India announced its first list of 30 critical minerals (see Table 1). This development highlights India’s ambitions to position itself to address current and future challenges related to resource security, industrial growth, and sustainable development. This is a first, significant step that can help define domestic and international strategies for securing critical mineral supply chains, which are crucial to the country’s economic and climate ambitions.

Source: Ministry of Mines (June 2023), “Critical Minerals for India”, Government of India.

Domestically, one of the key initiatives has been the amendments to the Mines and Minerals (Development and Regulation) Act in 2023, which aimed to enhance private sector participation in the exploration and mining of critical minerals. These amendments have streamlined the auction process for mining rights, making it easier for private companies to participate in exploration and extraction, while also facilitating exploration of deep-seated and lesser-known mineral reserves through the introduction of Exploration Licenses. To further boost domestic exploration, India launched its first auction of blocs for critical minerals like lithium and rare earth elements, aiming to tap into untapped reserves and reduce dependency on imports.

In 2024, the government also announced the Critical Minerals Mission, a focused initiative to coordinate efforts in securing access to critical minerals both domestically and internationally. This Mission will enhance resource mapping, expedite exploration activities, and promote the development of a resilient supply chain for critical minerals, ensuring India meets its long-term industrial and green energy targets. In her 2024 Union budget speech, India’s Finance Minister, Nirmala Sitharaman thus emphasised that this Mission will also focus on “overseas acquisition of critical mineral assets”.

However, as the global demand for critical minerals continues to rise, securing resilient supply chains is no longer just a matter of national interest but a geopolitical necessity. For India, international cooperation is essential for not only ensuring access to these vital resources but also establishing itself as a major player in the global clean energy economy.

For India, international cooperation is essential for not only ensuring access to these vital resources but also establishing itself as a major player in the global clean energy economy.

India has formed Khanij Bidesh India Ltd. (KABIL), a joint venture established in 2019 to identify and acquire critical mineral assets overseas. KABIL has been working on securing access to mineral reserves in countries like Argentina, Chile, and Australia, particularly for lithium and cobalt. Additionally, India is looking to explore signed bilateral partnerships on critical minerals and has signed agreements with Australia to facilitate joint exploration, research, and development of critical mineral supply chains.

Furthermore, India is a member of the U.S.-led Mineral Security Partnership (MSP) and is involved in forums like the Quad and the Indo-Pacific Economic Framework (IPEF), all frameworks that are looking to ensure resilient and sustainable critical mineral supply chains globally. In other cases, India is beginning to engage its key international partners on issues indirectly relating to critical minerals, in different geographies and sectors, from trade to technology (see Table 2). Through these domestic reforms and international engagements, India is working to establish a secure and resilient critical mineral supply chain, essential for achieving its ambitious renewable energy, electric vehicle, and decarbonisation goals.

Assessing the Potential and Limitations of International Partnerships

This blog series explores India’s partnerships with various governments, regional groupings, and international bodies on critical minerals as surveyed below (see Table 2). It develops a comprehensive series of research and evidence-based primers on India’s recent engagements in the regional and global landscape. The goal is to create a repository on India’s current initiatives in the international arena of critical minerals partnerships and competition. By mapping India’s international partnerships on critical minerals, this series of review articles will provide preliminary insights on some of the following research questions that inform CSEP’s larger analytical study:

• What steps has India taken together with different partners to ensure access to critical minerals? What is the focus and scope of these agreements and negotiations? What do they reflect in terms of India’s approach to balancing competing economic, geopolitical, and climate diplomacy interests?
• How are India’s partner countries securing their critical mineral supply chains through domestic policy frameworks as well as bilateral, minilateral, and multilateral frameworks? And at what level is India seeking ways to engage?
• What are the implications for countries excluded from these partnership frameworks, especially those in the Global South and that India seeks to engage with? What do these partnerships offer in terms of sustainability, particularly economic, social and governance standards on mining and processing?
• How should India balance its engagements between multilateral efforts focused on global governance of critical minerals, on the one hand, and bilateral engagements focused more narrowly on securing access and resilient supply of critical minerals, on the other?

Table 2: India’s Existing and Potential Partnerships on Critical Minerals

Source: Authors’ compilation based on various sources.

*Note: The Author would like to thank Dr Constantino Xavier, Senior Fellow, CSEP for his insightful comments.