NEW DELHI: As Chinese startups continue to storm the world of AI, India on Wednesday raised its game by launching the National Critical Mineral Mission with a plan to invest Rs 34,300 crore — about $4 billion — in the next six years for securing a long-term sustainable supply chain of crucial natural resources needed for achieving its semiconductor and cutting-edge tech dreams.
The mission envisages building a globally competitive and resilient end-to-end ecosystem to enhance availability of critical minerals. This will be done through accelerated exploration to raise domestic production, acquisition of 50 overseas mines by 2030-31, building facilities for intermediary processing and recycling, I&B minister Ashwini Vaishnaw said after the Cabinet approved themission.
Critical minerals and rare earth elements (REE) are crucial for semiconductor manufacturing and hi-tech development, an advantage China enjoys because of its control over 70-80% of global critical mineral resources. Lithium, niobium and REEs have strategic significance due their applications in sectors ranging from mobiles, EVs and medical equipment to defence as well as space.
Vaishnaw said govt and its agencies will provide Rs 16,300 crore, while public sector entities such as KABIL — a joint venture of state-run miners for overseas acquisitions — will spend Rs 18,000 crore as part of their investment plans.
The mission will provide a policy fillip to KABIL’s quest for stakes in Australia, Chile and Argentina mines.
He said the private sector and startups will have a major role, especially in exploration and technology development.