In December 2024, the Indian government canceled the auction of 11 critical mineral blocks due to insufficient interest from bidders. Four blocks, including those containing tungsten and glauconite in Chhattisgarh and Arunachal Pradesh, received no bids, while seven others attracted fewer than the required three technically qualified bidders.
This pattern of tepid responses has been observed in previous auctions as well. The government had earlier canceled the auction of three critical mineral blocks in the third round, 14 blocks in the second round, and 14 in the first tranche of critical minerals due to lukewarm responses.
In response to these challenges, India is preparing to launch a Critical Mineral Mission aimed at securing essential resources for green energy and technology sectors. This initiative will involve collaboration among government entities, industry stakeholders, and research institutions, focusing on acquiring overseas assets like lithium and cobalt, particularly in Australia, and enhancing domestic mining through improved auction processes and international roadshows.
Critical minerals such as cobalt, copper, lithium, nickel, and rare earth elements are vital for the production of clean energy technologies, including wind turbines and electric vehicles. The lack of progress in auctioning these blocks raises concerns about potential supply chain vulnerabilities, underscoring the need for a more industry-aligned framework to attract investments in this crucial sector.
