Critical minerals stockpiling policy likely within a month, says Mines Secretary
Why does India want a strategic reserve of lithium, cobalt and rare earths, much like its oil reserve?
Published 10 October 2026. Written by Pratidin from the reports linked at the end; every fact checked by a separate review before publishing. How we work
On 9 October 2026, Mines Secretary Keshav Chandra said the Ministry of Mines is likely to finalise a policy on stockpiling critical minerals within about a month. "We are on the verge of finalising the policy on stockpiling of critical minerals," he told reporters at the India Mines and Minerals Conclave 2026, organised by the industry body Assocham in New Delhi. The policy is to lay down release protocols, including how much can be released and who is eligible to receive it. Chandra said it is not feasible to mine every mineral at home, so India needs another way to secure minerals that are not sufficiently available domestically, adding that "stockpiling is slightly different from godowns". The stockpile is meant to support strategic sectors such as defence, advanced electronics and aerospace.
The stockpile is a component of the National Critical Mineral Mission (NCMM), approved by the Union Cabinet on 29 January 2025 with an outlay of ₹34,300 crore over seven years: ₹16,300 crore of government spending and ₹18,000 crore expected from public sector undertakings and others. The Indian Express reports a proposed ₹500 crore for the national stockpile over the mission period 2024-25 to 2030-31, starting with at least five minerals and run jointly with Central PSUs or private firms. Four critical mineral processing parks are planned in Gujarat, Maharashtra, Andhra Pradesh and Odisha, and a separate ₹1,500 crore scheme supports recovery of critical minerals from recycled products. Chandra said black mass, the powder recovered from used lithium-ion batteries, should be processed in India rather than exported.
Critical minerals such as lithium, cobalt, nickel, copper and rare earth elements go into electric vehicles, batteries, wind turbines and electricity networks. The Indian Express notes that China controls about 90% of global critical mineral processing and that Khanij Bidesh India Ltd (KABIL), the State-backed firm for overseas mineral assets, has had limited success abroad apart from lithium blocks in Argentina. Chandra said no country holds all critical minerals within its borders, so India must combine domestic auctions, recycling and overseas sourcing. He also criticised the "tendency to take over the mine and not operationalise it for quite some time", and said countries with processing know-how are reluctant to share it, so India must build its own technology and add value before export.
Prelims facts
- Mines Secretary Keshav Chandra said on 9 October 2026 that a critical minerals stockpiling policy is likely within a month, with release protocols on quantities and eligible recipients.
- The National Critical Mineral Mission, approved on 29 January 2025, has an outlay of ₹34,300 crore over seven years (₹16,300 crore government, ₹18,000 crore from PSUs and others).
- A domestic critical mineral stockpile is one of the NCMM's components, alongside exploration, overseas acquisition, processing parks and recycling.
- Four critical mineral processing parks are planned in Gujarat, Maharashtra, Andhra Pradesh and Odisha.
- KABIL acquired about 15,703 hectares in Catamarca, Argentina, for lithium exploration.
Quick recall
- Who said on 9 October 2026 that a critical minerals stockpiling policy is likely within a month?
- Mines Secretary Keshav Chandra, at an Assocham conclave in New Delhi.
- When was the National Critical Mineral Mission approved and with what outlay?
- 29 January 2025; ₹34,300 crore over seven years.
- How is the NCMM's ₹34,300 crore split?
- ₹16,300 crore government spending; ₹18,000 crore expected from PSUs and others.
- In which four States are critical mineral processing parks planned?
- Gujarat, Maharashtra, Andhra Pradesh and Odisha.
- What is 'black mass'?
- Material recovered from recycling lithium-ion batteries; the Mines Secretary wants it processed in India, not exported.
- Where has KABIL acquired lithium exploration area?
- About 15,703 hectares in Catamarca, Argentina.
- How many critical minerals did India identify in 2023?
- 30.
- Where are India's strategic crude oil reserves?
- Underground caverns at Visakhapatnam, Mangaluru and Padur.
Prelims practice question
With reference to the National Critical Mineral Mission (NCMM), consider the following statements:
1. It was approved by the Union Cabinet in January 2025 with an outlay of ₹34,300 crore over seven years.
2. The entire outlay is to be met from the Union Budget.
3. Development of a domestic critical mineral stockpile is one of its components.
Which of the statements given above are correct?
- 1 and 2 only
- 1 and 3 only
- 2 and 3 only
- 1, 2 and 3
Show answer
Answer: (b) 1 and 3 only. 1 is correct (approved 29 January 2025). 2 is wrong: government spending is ₹16,300 crore and ₹18,000 crore is expected from PSUs and others. 3 is correct: a critical mineral stockpile is a listed component.
Use this in UPSC Mains: previous-year questions
Recurring theme: Critical minerals, supply chain security and India's resource strategy
- How to use this
Use the stockpiling policy and NCMM as examples of India building alternative supply chains for critical minerals in which China dominates processing.
- National Critical Mineral Mission (January 2025): ₹34,300 crore over seven years covering exploration, overseas assets, stockpile, processing parks and recycling.
- Stockpiling policy expected within a month of 9 October 2026, to support defence, advanced electronics and aerospace.
- Four processing parks planned in Gujarat, Maharashtra, Andhra Pradesh and Odisha; KABIL holds a lithium area in Catamarca, Argentina.
Directly tests critical mineral policy: India's list of 30, the Minerals Security Partnership and the 2023 MMDR amendment. The answer is (c): India is not resource-rich in all 30.
Rare earths are among the minerals a stockpile would cover; monazite is India's main source of them.
Mains practice question
What is a strategic stockpile of critical minerals? Discuss how it complements the other components of India's National Critical Mineral Mission in reducing import dependence. (150 words)
Model answer
A strategic stockpile is a government-backed reserve of critical minerals released under set rules during supply shocks. On 9 October 2026 the Mines Secretary said India's stockpiling policy is likely within a month.
Why a stockpile
- Not every mineral can be mined at home; a reserve buys time during disruptions.
- Supports strategic sectors: defence, advanced electronics, aerospace.
- Release protocols will fix quantities and eligible recipients.
How it fits the NCMM (₹34,300 crore, approved January 2025)
- Exploration and auctions: domestic supply over the long term.
- Overseas assets: KABIL's lithium area in Catamarca, Argentina.
- Processing parks: Gujarat, Maharashtra, Andhra Pradesh, Odisha.
- Recycling: ₹1,500 crore scheme; black mass to be processed at home.
Concerns
- Auctioned mines not operationalised quickly.
- Processing technology is hard to acquire.
- Stockpiles are costly and need clear release rules.
A stockpile is a buffer, not a substitute: it works only alongside mining, processing and recycling capacity.
The basics
Why this matters
Clean energy and modern defence run on minerals that India has little of. Lithium for batteries, cobalt and nickel for cathodes, rare earths for magnets in motors and wind turbines: supply of these is concentrated in a few countries. On 9 October 2026 the Mines Secretary said India will soon have a policy for stockpiling them. To understand why, start with what makes a mineral "critical".
What makes a mineral critical
A mineral is called critical when it is essential to the economy or national security and its supply is at risk, because reserves are scarce, mining or processing is concentrated in a few places, or substitutes are hard to find. India identified a list of 30 Critical minerals in 2023.
- 1LithiumBatteries for electric vehicles and storage
- 2Cobalt and nickelBattery cathodes
- 3Rare earth elementsPermanent magnets in motors and wind turbines
- 4CopperElectricity networks and wiring
The mission that ties it together
The National Critical Mineral Mission, approved in January 2025, covers the whole value chain: exploration, mining, beneficiation, processing and recovery from end-of-life products. Its outlay is ₹34,300 crore over seven years.
Why a stockpile
Mining takes years to start; a shock can hit in weeks. A Strategic stockpiling reserve buys time. The idea is familiar from oil: India keeps strategic crude reserves in underground caverns at Visakhapatnam, Mangaluru and Padur for emergencies. The Mines Secretary stressed that a mineral stockpile is "slightly different from godowns": it needs rules on what to buy, when to release, how much and to whom.
The other levers
A stockpile is only a buffer. Long-term supply needs domestic auctions, made easier by the 2023 amendment to the mining law, processing parks in Gujarat, Maharashtra, Andhra Pradesh and Odisha, recycling of battery black mass, and overseas assets through KABIL, which holds a lithium exploration area in Catamarca, Argentina.
- 1ExploreFind deposits at home and offshore
- 2MineAuction blocks and start production quickly
- 3ProcessRefine ore into usable material in processing parks
- 4StockpileHold a reserve for supply shocks
- 5RecycleRecover minerals from used batteries and electronics
Go deeper
In one line: India's Mines Secretary said on 9 October 2026 that a policy to stockpile critical minerals, with rules on how much to release and to whom, is likely within a month.
Why it matters for UPSC
Critical minerals link GS3 economy (manufacturing, energy transition), GS1 resource geography and GS2 international relations (supply chains, China). Prelims has already asked about India's list of 30 critical minerals and the 2023 mining law amendment.
The core idea
Critical minerals are those vital to the economy or security whose supply is at risk. India imports most of them, and processing is concentrated abroad. The National Critical Mineral Mission attacks this along the whole chain, and a Strategic stockpiling reserve is one of its components: a buffer to ride out shocks while domestic mining, processing and recycling grow. Overseas sourcing runs through KABIL.
Numbers and dates to remember
- 29 January 2025: NCMM approved; ₹34,300 crore over seven years.
- ₹16,300 crore government; ₹18,000 crore expected from PSUs and others.
- Proposed ₹500 crore for the national stockpile (as reported by the Indian Express).
- Four processing parks: Gujarat, Maharashtra, Andhra Pradesh, Odisha.
- ₹1,500 crore scheme for recycling critical minerals.
- About 15,703 hectares acquired by KABIL in Catamarca, Argentina.
Where to go next
- Critical minerals: what the term means and India's list.
- National Critical Mineral Mission: the umbrella programme and its components.
- Strategic stockpiling: how a mineral reserve works and what can go wrong.
- KABIL: India's vehicle for overseas mineral assets.
Go deeper: can a stockpile fix a supply chain problem?
The case for. Mining projects take years to move from auction to output, and processing know-how is guarded. The Mines Secretary said countries with established capabilities are reluctant to share processing technologies. A Strategic stockpiling reserve, like the crude oil caverns India already keeps, gives defence, electronics and aerospace users time to adjust when exports are cut. Release protocols that fix quantities and eligible recipients make the reserve predictable rather than discretionary.
The limits. A reserve holds only what can be bought in the first place, and buying in a tight market raises prices. The Indian Express notes China's dominance of about 90% of global processing, which a stockpile does not change. Storage, rotation and the choice of minerals all cost money; the reported ₹500 crore for the stockpile is small beside the ₹34,300 crore National Critical Mineral Mission. The Secretary also flagged a home-grown weakness: winners of auctioned blocks who do not start mining for a long time.
What else must move. Lasting security needs domestic exploration and quick operationalisation of mines, processing parks in Gujarat, Maharashtra, Andhra Pradesh and Odisha, recycling of battery black mass at home, and overseas assets through KABIL. It also needs partners: India is a member of the Minerals Security Partnership. The list of Critical minerals itself shows the scale of the task, since India is not resource-rich in all of them. The stockpile is best read as insurance while the rest of the chain is built.
Critical minerals
What makes a mineral critical and what India's list contains.
In one line: Critical minerals are minerals essential to economic development and national security whose supply is at risk because of scarcity or concentration of mining and processing.
India's list
In 2023 the Ministry of Mines identified 30 critical minerals, including lithium, cobalt, nickel, graphite, rare earth elements, copper and others. India is not resource-rich in all of them and imports many.
The law
The Mines and Minerals (Development and Regulation) Amendment Act, 2023 empowered the Central government to exclusively auction mining leases and composite licences for certain critical minerals, to speed up their exploitation.
Why it is in the news
The Mines Ministry's stockpiling policy, expected within a month of 9 October 2026, will decide which of these minerals to hold in reserve.
Where to go next
National Critical Mineral Mission
The umbrella programme under which the stockpile sits.
In one line: The National Critical Mineral Mission (NCMM), approved by the Union Cabinet on 29 January 2025, aims to build a secure value chain for critical minerals with ₹34,300 crore over seven years.
What it covers
Exploration in India and offshore areas, a fast-track approval process for mining projects, support for acquiring mineral assets abroad, a domestic critical mineral stockpile, mineral processing parks, recycling, and research including a proposed Centre of Excellence on Critical Minerals.
The money
Government spending of ₹16,300 crore, plus ₹18,000 crore expected from public sector undertakings and others.
Why it is in the news
The stockpiling policy announced as imminent on 9 October 2026 will set up the stockpile component of this mission.
Where to go next
National Critical Mineral Mission: every story that connects to it (2)
Strategic stockpiling
How a government mineral reserve works and what it cannot do.
In one line: Strategic stockpiling means the government builds a reserve of an essential imported input and releases it under set rules during supply disruptions.
The oil precedent
India already holds strategic crude oil reserves in underground rock caverns at Visakhapatnam, Mangaluru and Padur, managed by Indian Strategic Petroleum Reserves Ltd, for use in emergencies.
What a mineral stockpile needs
The Mines Secretary said stockpiling is "slightly different from godowns". It needs choices on which minerals to hold, in what form, how to rotate stock, and release protocols covering quantities and eligible recipients. The Indian Express reports that the reserve would start with at least five minerals.
Why it is in the news
The policy for India's first national critical mineral stockpile was said on 9 October 2026 to be about a month away.
Where to go next
KABIL
India's State-backed vehicle for buying mineral assets abroad.
In one line: Khanij Bidesh India Ltd (KABIL) is a joint venture of three Central public sector enterprises, NALCO, Hindustan Copper and MECL, set up to acquire critical and strategic mineral assets overseas.
What it has done
KABIL acquired about 15,703 hectares in the Catamarca province of Argentina for lithium exploration and mining. It is exploring other assets abroad for acquisition.
The challenge
The Indian Express notes that KABIL has had limited success in securing assets outside Argentina. Competition for mineral assets is intense, and many resource-rich countries now want processing and value addition at home.
Why it is in the news
The Mines Secretary said on 9 October 2026 that because no country has all critical minerals within its borders, India must combine domestic mining, recycling and overseas sourcing, which is KABIL's role.
Where to go next
Take the 10 October 2026 quiz: 30 Prelims-style questions with answers