India Critical Mineral Stockpiling Policy: Government Plans Strategic Reserves

India is preparing a critical mineral stockpiling policy to reduce import dependence and protect domestic industries from global supply chain disruptions. The Centre expects to finalise the policy within a month, according to Keshav Chandra, Secretary of the Ministry of Mines, who spoke at the India Mines and Minerals Conclave 2026 organised by ASSOCHAM.

“We are making very elaborate plans for the stockpiles,” Chandra said, highlighting the government’s efforts to secure supplies of minerals essential to India’s industrial and clean energy ambitions.

The proposed reserves would help ensure the availability of critical raw materials during emergencies and periods of international trade uncertainty.

• mineral reserves: India wants to set up a National Critical Mineral Stockpile Programme to keep essential minerals safe.
• Import dependence: India depends on imports, for all critical minerals and India has only a small amount of local processing power.
• Overseas acquisition challenges: Khanij Bidesh India Ltd (KABIL), the government-backed overseas mineral acquisition company, has faced difficulties advancing projects in countries including Australia, Vietnam, Mali and Chile.
• Processing infrastructure: Andhra Pradesh, Odisha, Gujarat and Maharashtra have been identified for developing critical mineral processing plants.

The proposed national stockpile is expected to contain at least five critical minerals. The purpose of this programme is to lower the risk of supply disruptions and to keep enough supplies for domestic needs.

India’s critical mineral stockpile programme comes at a time when China dominates the processing of minerals worldwide. The report says China handles 90 per cent of global critical mineral processing. This makes other countries rely on China for processing, which puts them at risk of trade limits and supply breaks.

Critical minerals like lithium, copper, nickel, cobalt and earth elements are vital for electric vehicles, batteries, wind turbines and power networks. Getting these materials is very important for India’s move to clean energy and for its manufacturing goals.

India has made some progress in overseas mineral acquisition. KABIL has acquired five lithium brine blocks in Argentina’s Catamarca province, although efforts to expand its international portfolio have encountered obstacles.

The government plans to finalise its stockpiling policy within a month. Alongside strategic reserves, it is working to expand domestic processing through dedicated mineral parks.

Gujarat and Andhra Pradesh are expected to focus on rare earth processing, while Odisha and Maharashtra are set to concentrate on nickel and lithium, respectively.