The Indian government is taking significant steps towards promoting self-reliance in the critical minerals industry by offering financial incentives for the development of minerals such as lithium. This move is aimed at reducing the country’s heavy reliance on imports and fostering a more sustainable and secure supply chain for these essential minerals.
The initiative, spearheaded by Veena Kumari Dermal, joint secretary in the Ministry of Mines, includes providing funding for research institutes to offer technical assistance to miners. This financial support could amount to as much as $50 million, signaling a strong commitment to advancing the critical minerals sector in India.
Despite previous efforts to boost the industry, including granting development rights for a lithium block in Chhattisgarh, challenges remain in attracting interest and investment. The recent failed attempt in Jammu and Kashmir due to financial feasibility concerns underscores the need for targeted interventions to drive progress in this sector.
As the global community grapples with the impacts of climate change, the demand for lithium and rare earth minerals has surged, particularly in the context of advancing energy transition technologies. The focus of the government’s initiative is to facilitate the development of extraction technology and improve beneficiation methods to enhance the efficiency of mineral processing.
In a bid to provide guidance and support for mineral extraction, the Ministry of Mines has directed research institutes like the CSIR-National Institute for Interdisciplinary Science and Technology (NIIST) to offer expertise to miners. Given that critical minerals are often found in conjunction with other minerals and metals, specialized extraction techniques are required, necessitating collaboration between institutes and companies.
The scheme outlined by the ministry requires joint proposals from institutes and companies, with approved projects eligible for up to 75% of the total funding. This collaborative approach aims to leverage the expertise of research institutions and industry players to drive innovation and efficiency in critical mineral extraction processes.
In conclusion, the Indian government’s efforts to promote self-reliance in the critical minerals industry through financial incentives and technical support are crucial steps towards building a robust and sustainable supply chain for essential minerals. By fostering collaboration between research institutes and mining companies, India is poised to enhance its capabilities in mineral extraction and contribute to global efforts towards a more secure and resilient mineral supply chain.