India approves $1.9b to boost mineral supplies for green energy, defence sectors

NEW DELHI: India has greenlit a $1.9 billion plan to help snap up supplies of a range of critical minerals vital for the country’s green energy and defence sectors.

The world’s most populous country needs raw materials including lithium and cobalt to boost electric vehicle production and achieve its aim of becoming a net-zero carbon emitter by 2070.

But New Delhi relies on imports for its requirements, with China being a key supplier.

While once-frosty ties with Beijing are slowly thawing, India is still keen to diversify and encourage local exploration and production.

India’s cabinet on Wednesday approved a mission to “intensify the exploration of critical minerals” both within the country and offshore.

Read Relevant: Pakistan faces $390 billion investment challenge for green energy transition by 2050

“The mission will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings (leftover waste material from mining operations),” a statement from the mines ministry said.

Indian state-run firms are also expected to invest 180 billion rupees, the statement added, and will be encouraged along with private players to “acquire critical mineral assets abroad” and “enhance trade with resource-rich countries”.

Last year India bought exploration and production rights to lithium blocks in Argentina in its first such overseas deal.

The five-block deal was signed between state-owned Khanij Bidesh India and Argentina’s state-owned Camyen SE in the Catamarca province, the source of some of Argentina’s largest lithium deposits.

A year before that, India found its first lithium deposits in the country’s north, with estimated reserves of 5.9 million tonnes.