India approves $1.88bn to develop critical minerals sector

India has approved 163 billion rupees ($1.88 billion) to develop its critical minerals sector, the information minister said on Wednesday, as the world’s fastest-growing major economy aims to secure raw materials such as lithium.

Reuters had on Tuesday reported that the federal Ministry of Mines had earmarked funding of 163 billion rupees, citing a source and documents.

The government also said it expects additional investment of 180 billion rupees from the public sector in critical minerals.

“The mission will intensify the exploration of critical minerals within the country and in its offshore areas… Additionally, the mission will offer financial incentives for critical mineral exploration,” the government statement said on Wednesday.

The funding illustrates India’s efforts to reduce its reliance on imports of minerals such as lithium, key to energy transition technologies.

India is still in the process of developing lithium processing technology, a sector predominantly led by China.

New Delhi has contacted a host of countries, including Australia, Russia and the United States, to seek technical help to develop lithium processing technology.

In 2023, India identified 30 minerals, including lithium, as “critical” for its energy transition efforts and to meet the growing demand from industries and the infrastructure sector. The country otherwise relies on imports to meet its rising demand.

($1 = 86.5400 Indian rupees)

(By Sudipto Ganguly and Neha Arora; Editing by Bernadette Baum and Kim Coghill)