India approves $1.9bn bid to boost critical mineral supplies

MUMBAI: India has approved $1.9 billion initiative to acquire essential minerals crucial for the nation's green energy and defence sectors.

The world's most populous country requires raw materials such as lithium and cobalt to enhance electric vehicle production and achieve its target of becoming a net-zero carbon emitter by 2070.

However, New Delhi relies on imports for these resources, with China being a key supplier.

Although relations with Beijing are gradually improving, India remains keen to diversify and promote local exploration and production.

India's cabinet on Wednesday approved a mission to 'intensify the exploration of critical minerals' both domestically and offshore.

"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)," stated the mines ministry.

Indian state-run companies are expected to invest INR 180 billion (approximately $2.1 billion), and will be encouraged, along with private firms, to "acquire critical mineral assets abroad" and "enhance trade with resource-rich countries."

Last year, India secured exploration and production rights to lithium blocks in Argentina, marking its first overseas deal of this nature.

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

A year prior, India discovered its first lithium deposits in the country's north, with estimated reserves of 5.9 million tonnes.

By RSS/AFP