Technology Dealtracker: Q2 2026
Thought leadershipTechnology investors and acquirers continued to focus on businesses with strong execution, scalable offerings and clear commercial relevance during the second quarter of 2026.
Building a critical minerals ecosystem in India
Critical minerals have rapidly become central to India's economic and strategic agenda. As the country advances its ambitions in clean energy, electric mobility, advanced manufacturing and digital technologies, demand for minerals such as lithium, cobalt, nickel, graphite, copper, silicon and rare earth elements is expected to grow substantially.
At the same time, India’s dependence on imports, constrained processing capacity and exposure to concentrated global supply chains constitute significant challenges. Dealing with these vulnerabilities requires a wider approach than simply increasing mineral extraction. Developing a resilient critical minerals ecosystem will depend on strengthening exploration, refining, recycling, financing, technology development and cross-border cooperation. This report analyses the steps needed to build an integrated value chain that boosts supply security while supporting India's sustained growth and sustainability objectives.
Key insights
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Demand for critical minerals is expected to rise sharply, driven by the expansion of clean energy, electric mobility, battery storage and advanced manufacturing.
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India possesses reserves of several strategic minerals but remains heavily reliant on imports for many high-value resources key to emerging technologies.
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Building domestic refining and processing capacity is essential to complement mining activities.
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Recycling, urban mining and waste-to-wealth programs can provide an important secondary source of critical minerals.
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The National Critical Mineral Mission offers a strong policy framework to support exploration, processing and overseas resource procurement.
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Limited access to suitable financing is still a major challenge, particularly for refining and recycling projects.
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International partnerships and overseas investments will play an important role alongside domestic resource development.
8.
Long-term supply security will require an integrated approach across the entire value chain.
Why is India investing in a critical minerals ecosystem?
India's transition to a low-carbon economy is altering its resource requirements. Technologies that support renewable energy, electric vehicles, semiconductors, defence systems and advanced electronics are heavily dependent on critical minerals. Ensuring reliable access to these resources is increasingly important not only for the energy transition but also for economic resilience, industrial competitiveness, and national security.
The country's broader manufacturing ambitions add another layer of urgency. As India seeks to improve its position in global supply chains, a secure and dependable supply of critical raw materials will be important for industries spanning from battery manufacturing and electronics to renewable energy equipment and defence.
Understanding critical minerals and their significance
Critical minerals are resources that are economically important but vulnerable to supply disruptions due to factors such as limited geographic availability, concentrated processing capacity, or geopolitical risks. Key examples include lithium, cobalt, nickel, graphite, copper, silicon and rare earth elements. These minerals form the backbone of a wide range of technologies that will shape the future economy. Strengthening capabilities across mining, processing and recycling can help India reduce import dependence, strengthen resource security and bolster sustainable industrial development.
India’s supply challenge
India's mineral resource base shows a mixed picture. The country has mineral reserves, such as copper, graphite, phosphorus, titanium, and rare earth elements, creating opportunities for domestic production. Yet several strategically important minerals continue to be sourced largely through imports because of limited reserves or gaps in processing technologies.
The challenge is not confined to resource readiness. Much of the value creation in global mineral supply chains occurs during refining and processing, areas where domestic capacity remains limited for several critical minerals. Closing this gap will require sustained investment in advanced processing technologies, beneficiation facilities, and supporting infrastructure.
Critical minerals and EV transition
The rapid growth of electric mobility is projected to drive a significant increase in demand for critical minerals. Lithium, cobalt, nickel, and graphite are essential inputs for battery technologies, while copper remains essential for vehicle electrification and associated infrastructure.
As electric vehicle adoption accelerates, access to these materials will become increasingly important for sustaining India's mobility transition and backing domestic manufacturing ambitions.
Building a resilient critical minerals value chain
Strengthening the critical minerals ecosystem will necessitate coordinated efforts across every stage of the value chain. Accelerated exploration programmes, efficient auction mechanisms, investor-friendly regulations and streamlined approvals can support higher levels of domestic production. Equally important is the development of refining and beneficiation capacity that enables greater value addition within the country.
Energy transition minerals
Minerals such as lithium, nickel, cobalt, graphite, copper, and silicon are expected to stay vital to India’s renewable energy expansion. With demand likely to expand alongside the deployment of solar, wind, and energy storage, recycling and resource recovery will become increasingly important. Urban mining and extraction from industrial waste streams offer good opportunities to supplement primary production while improving resource efficiency.
Strengthening supply security
A strong supply strategy cannot rely on one single source or approach. Domestic production needs to be complemented by overseas asset acquisitions, international partnerships, recycling infrastructure and circular economy initiatives. Measures like transparent mineral markets, greater private-sector participation, and stronger supply chain networks can also improve India’s position in the global critical-minerals landscape.
The roadmap to 2047 is clear
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2026-31
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Build foundation: EPR operational mandates, scrap export restrictions, Circular Mineral Processing Zones (CMPZ), PLI for recyclers, battery tracking, tailings recovery, and skill development.
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2031–36
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Industrialise: scale CMPZs, deploy traceability, expand direct recycling, and mobilise global climate finance/dedicated green bond or blended finance vehicle for critical mineral recycling.
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2036-47
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Achieve strategic self-reliance: cut imports by 30–40% for battery minerals and 20 to 25% for copper and graphite, generate USD 10–15 billion annually from recycling, and contribute significantly to net zero goals.
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Conclusion
India's critical minerals journey extends well beyond expanding mining capacity. It represents an opportunity to build a globally competitive ecosystem that integrates exploration, refining, manufacturing, recycling, financing, and international partnerships into a unified strategy. By strengthening the critical minerals value chain, scaling circular economy initiatives, and implementing investor-friendly reforms under the National Critical Mineral Mission, India can significantly reduce supply risks while supporting clean energy, advanced manufacturing, and strategic industries. A resilient critical minerals ecosystem in India will ultimately play a defining role in achieving energy security, industrial competitiveness, and the vision of Viksit Bharat 2047.
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