PHDCCI calls for creation of a department of critical metals, suggests aggressive mineral diplomacy

NEW DELHI, 3rd November, 2025: PHDCCI organised a Brainstorming Session on “Critical Minerals: Way Forward to Overcome Global Supply Chain Uncertainties” recently, where eminent experts gave their suggestions for circumventing global supply chain uncertainties in critical  minerals segment.

Mr Anil Chaudhary, Senior Member, Minerals & Metals Committee, PHDCCI  and former Chairman, SAIL, complimented the Government of India for identifying 30 critical minerals and strongly advocated for inclusion of coking coal in the list of critical minerals since India has been importing 90% of the coking coal requirement worth $15 billion every year which is likely to double in next 10-12 years.

Mr Chaudhary informed that critical mineral supplies are susceptible to trade and geopolitical problems and hence India should forge mineral diplomacy with smaller countries which are rich in critical minerals to form strategic partnerships. Such countries could be Congo, Mozambique and even Afghanistan and Latin American countries, he said, to reduce India’s dependence on China.

He suggested creation of an exclusive Department for Critical Minerals since the value chain requires a holistic approach and inter-ministerial coordination; consider stockpiling and keeping buffer inventories as done by the US in oil & gas sector; incentivize private sector for investing in critical mineral exploration and processing; reducing bureaucratic hurdles.

Mr Sandeep Hamilton, Founder & Chairman, Critical Minerals Association of India, gave the mantra Collaborate Globally and Secure Nationally – to reduce dependence on China. He said that critical mineral security is the integrated management of 3Gs –Geology, Geopolitics and Geo-governance.

Mr Deepak Bhatnagar, Secretary General, Pellet Manufacturers’ Association of India, advocated for a holistic and time bound mission mode approach for development of critical minerals, on the lines of Mission Agni started by former President of India, Dr APJ Abdul Kalam.

Mr Bhatnagar suggested focus on development of full critical minerals supply chain – from exploration to extraction, processing, value addition development and  commercialization to marketing – as done by China under their National Mission approach.

Mr Abhinav Sengupta, Associate Director, PricewaterhouseCoopers, stressed on focusing on investing in processing of critical minerals as China controls most of the critical minerals processing which gives it a dominant position in global trade.

He informed that Energy Transition is going to be highly mineral intensive especially with the requirements for critical minerals as offshore wind is the most mineral intensive among electricity generation sources (7× more than natural gas plants), EVs are 6× more mineral intensive compared to conventional petrol or diesel vehicles (mostly due to batteries), solar PV and onshore wind also require 2–3× more minerals compared to fossil fuel power, hence atmanirbharta in critical minerals in critical for India.

Ms Meheli Roy Choudhury, Research Consultant, Chintan Research Foundation, highlighted the importance of building resilient & diversified supply chain networks. She emphasised that rather than relying on China, India is utilising her good relationships with other import partners, which can act as alternate suppliers like Chile for Lithium, Japan, Belgium, and South Africa for Nickel; Germany and Japan for Graphite, and Belgium and Finland for Cobalt.

This kind of diversification is not a weakness, but rather, we need to partner with certain countries in a much more mutual development cooperation model like where, in exchange for minerals, we can add value to the other country’s economy through joint infrastructure projects in logistics, transportation, ports, investment in health sector, education sector, support for creating Aadhaar and UPI infrastructure, and many other such interventions at a G2G level.

Ms Shalini S. Sharma, Assistant Secretary General, PHDCCI, delivered the Welcome Address and said that Critical minerals are vital for India’s economic development, national security, and clean energy transition, serving as essential components for technologies like solar panels, wind turbines, and electric vehicles. Securing a stable supply is crucial for achieving India’s renewable energy goals, advancing its defense and technological sectors, and ensuring food security.