In a move that marks a significant shift in India’s approach to securing its critical mineral supply chains, state-owned Hindustan Copper Ltd (HCL) and GAIL (India) Ltd are set to sign a Memorandum of Understanding (MoU) for joint exploration of critical and strategic minerals. The partnership will focus not only on domestic mineral assets but also on opportunities abroad. With HCL’s longstanding expertise in copper mining and GAIL’s energy infrastructure and global outreach, this collaboration is expected to strengthen India’s efforts to secure raw materials essential for clean energy technologies and advanced manufacturing.
The MoU will facilitate joint reconnaissance, prospecting, and exploration of mineral blocks, focusing on copper and other essential minerals like lithium, cobalt, nickel, and rare earth elements (REEs). This strategic alignment comes on the heels of several similar collaborations by HCL, including recent tie-ups with Coal India Ltd for domestic exploration and with Chilean state copper giant Codelco for international cooperation. The alliance with GAIL reflects the increasing interest among Indian public sector undertakings (PSUs) in diversifying their portfolios to support the energy transition and national industrial goals.
India’s Critical Mineral Imperative
India’s pivot toward critical minerals is being guided by a comprehensive policy framework and strategic intent. In January 2025, the Union Cabinet approved the National Mission on Critical and Strategic Minerals, backed by an initial outlay of ₹16,300 crore, along with an additional ₹18,000 crore in PSU funding. The mission, running through FY 2030-31, aims to reduce India’s reliance on imports by scaling up exploration, developing downstream processing capabilities, incentivizing recycling, and acquiring overseas assets. It targets over 1,200 mineral exploration projects, both onshore and offshore, and places a strong emphasis on establishing strategic reserves.
This policy push is grounded in the realities of India’s mineral dependencies. India imports almost all of its lithium, cobalt, and rare earths—elements essential for the production of electric vehicle batteries, grid-scale energy storage, solar panels, wind turbines, and electronics. China currently dominates the global supply chain for many of these minerals, prompting India to diversify sourcing and ramp up domestic capabilities.
Why Critical Minerals Matter
- Essential for EVs (lithium, cobalt, graphite), grid-level storage (vanadium, nickel), renewables (copper, REEs), semiconductors (silicon, REEs).
- India’s geopolitical urgency stems from heavy dependence on imports—most of these minerals, especially from China.
- Without scaling domestic and overseas supply, India’s energy transition targets (500 GW renewables by 2030, 30% EV penetration) face significant risk.
Domestic Exploration and Auction Activity
The Geological Survey of India (GSI) has intensified exploration efforts over the past five years, initiating more than 360 projects across various states. In 2024, the Ministry of Mines auctioned 38 critical and strategic mineral blocks, including those for lithium, vanadium, graphite, and rare earths, under the amended Mines and Minerals (Development and Regulation) Act. This was followed by India’s first-ever auction of offshore mineral blocks in 2025, covering deep-sea polymetallic nodules in the Arabian Sea and Bay of Bengal—an initiative that could provide future access to manganese, copper, cobalt, and nickel.
The Northeast region has emerged as a hotspot for domestic critical mineral exploration, with discoveries of vanadium in Arunachal Pradesh, lithium-bearing pegmatites in Meghalaya, and rare earth occurrences in Assam. States like Rajasthan and Karnataka are using geospatial AI and machine learning to identify prospective blocks and fast-track exploration efforts.
Overseas Engagements and Strategic Partnerships
Beyond domestic initiatives, India is also forging partnerships to secure mineral assets overseas. A government-backed delegation of Indian geologists has recently visited Zambia to explore copper and cobalt blocks as part of a broader agreement with the Zambian government. In Latin America, KABIL (Khanij Bidesh India Ltd)—a joint venture of HCL, Nalco, and MECL—has already acquired lithium brine blocks in Argentina’s Catamarca province, covering over 15,000 hectares.
Coal India and NMDC are also actively scouting for mineral assets in Chile and Australia, focusing on lithium, copper, and other battery metals. ONGC Videsh has expressed interest in participating in mineral extraction projects abroad, indicating a growing convergence of energy and mining interests among Indian PSUs. These efforts are supported by India’s diplomatic engagements and free trade discussions with countries like Chile, Argentina, Mongolia, and the Democratic Republic of Congo.
Private Sector Interest and Industrial Participation
The private sector is beginning to play a more active role in this critical domain. In 2025, Vedanta Ltd won several critical mineral blocks through competitive auctions, including for vanadium, graphite, tungsten, and polymetallic resources. Indian startups and tech firms are also eyeing the recycling and circular economy potential of critical minerals, while the Ministry of Mines is encouraging private R&D and investment in mineral processing technologies.
