Exploration of Critical Minerals Increases by 53%, Despite Auction Challenges

India has significantly intensified its exploration of critical and strategic minerals, with the Geological Survey of India (GSI) undertaking 195 mineral exploration projects in the financial year 2024-25 (up to November). This marks a 53% increase from the 127 projects conducted in 2023-24. The current year’s initiatives encompass key resources such as lithium, graphite, phosphorite, and glauconite, distributed across various regions of the country.

Despite this heightened exploration activity, the auctioning of critical mineral blocks has encountered challenges. Out of 49 blocks offered for bidding, only 24 (approximately 49%) have been successfully auctioned. Factors contributing to this include limited foreign investment and systemic barriers in exploration and classification processes. For instance, the auction of a lithium block in Jammu and Kashmir failed to attract any bids in its second attempt, highlighting the complexities involved in developing a domestic critical minerals industry.

To address these challenges, the Indian government has implemented policy reforms aimed at enhancing private sector participation in the exploration and mining of critical minerals. Amendments to the Mines and Minerals (Development and Regulation) Act in 2023 have streamlined the auction process and introduced exploration licenses, facilitating access to deep-seated and untapped mineral reserves.

Furthermore, India is actively pursuing international collaborations to secure critical mineral supplies. State-owned enterprises like Coal India are exploring opportunities in countries such as Argentina and Chile for lithium acquisition, essential for electric vehicle batteries. These efforts are part of a broader strategy to reduce import dependence and strengthen domestic capabilities in critical mineral production.

While significant progress has been made in exploration, the Indian government continues to focus on overcoming auction-related hurdles and fostering a conducive environment for investment in the critical minerals sector.