Key Insights | Securing India’s Energy Security: Critical Mineral Stockpiling

Abstract

The demand for critical minerals is set to increase over the coming decades in India as they are vital to the manufacturing of green energy and defence technologies. Yet, India remains dependent on imports, disproportionately from China which can lead to supply chain vulnerabilities. In this context, critical mineral stockpiles – strategic reserves maintained to ensure an uninterrupted supply of critical minerals – provide a buffer through the release of stocks during shortages or price increases to stabilise supply and safeguard energy and national security. Today, Japan, South Korea, the United States and China are countries that maintain known stockpiles, while the European Union and India have announced plans to build their own. This paper seeks to explore the nature and extent of existing stockpiling programmes in India in sectors besides that of critical minerals, such as oil and food stockpiles, to see if lessons are transferable. It also seeks to understand how other countries have operationalised and managed their critical mineral stockpiles. Finally, the paper seeks to identify opportunities and challenges associated with the establishment and operation of such reserves and how stockpiling can complement other objectives of the National Critical Mineral Mission.