India is accelerating its push to secure critical minerals and build independent supply chains, a move increasingly viewed as a strategic challenge to China’s long-standing dominance in the sector.
Critical minerals such as lithium, cobalt and rare earth elements are essential for electric vehicles, semiconductors, renewable energy systems, defence technologies and advanced manufacturing. With global demand rising sharply, New Delhi is now treating mineral security as both an economic and national security priority.
Under the National Critical Minerals Mission launched in 2025, the Indian government has committed major investments toward exploration, mining, refining and supply chain development. Officials say the objective is to reduce India’s heavy dependence on imports while supporting the country’s ambitions in clean energy, electronics manufacturing and electric mobility.
India already possesses reserves of several important minerals, including rare earth elements, and recent lithium discoveries have strengthened hopes of improving long-term self-reliance. However, policymakers recognise that domestic production alone may not be sufficient to meet future industrial demand.
To address this challenge, India has adopted an aggressive overseas acquisition strategy. State-backed entities, including KABIL and various public sector undertakings, are actively exploring mineral assets and partnerships in regions such as Africa, Australia and Latin America.
At the same time, India is deepening strategic cooperation with countries looking to reduce reliance on Chinese-controlled supply chains. Partnerships involving the United States, Japan, Australia and Quad nations are increasingly focused on battery materials, rare earth processing, magnet manufacturing and resilient supply networks.
Industry experts believe India’s growing focus on refining and processing infrastructure is particularly significant. While China dominates global mining operations, its strongest advantage lies in refining capacity and downstream processing, which gives Beijing substantial control over global supply chains.
China currently accounts for a major share of global rare earth production and controls a dominant portion of refining and magnet manufacturing capacity. Through export licensing systems and regulatory controls, Beijing has the ability to monitor supply flows and potentially use mineral exports as strategic leverage during geopolitical or trade disputes.
India’s expanding role in the sector is now being closely watched because it signals the emergence of alternative supply networks outside Chinese influence. Although India remains dependent on imports today, analysts say the country’s long-term strategy could gradually weaken China’s leverage over one of the world’s most critical industrial sectors.
For New Delhi, securing critical minerals has become central to future economic growth, energy transition goals and technological independence. For Beijing, the growing diversification of global supply chains represents a strategic concern that could eventually dilute its influence over a rapidly expanding global market.
