National Critical Mineral Stockpile (NCMS)

The National Critical Mineral Stockpile (NCMS) is a forthcoming strategic initiative by the Government of India aimed at securing the nation’s supply of rare earth elements (REEs) and other critical minerals vital for emerging green technologies. The programme is a response to growing global supply chain vulnerabilities, particularly following China’s export restrictions on rare earth magnets—key components in electric vehicles (EVs), wind turbines, electronics, and defence technologies.

Background and Rationale

China currently dominates global rare earth production and refining, accounting for over 70% of the world’s supply. Its recent decision to impose export curbs on rare earth magnets has intensified concerns among major economies regarding resource dependence and the stability of global technology supply chains.
For India, which is striving toward clean energy transition, electric mobility, and self-reliant industrial manufacturing, the availability of critical minerals is essential. The National Critical Mineral Stockpile was conceived under the broader National Critical Minerals Mission (NCMM) to mitigate the risks of external supply disruptions and to promote strategic resource autonomy.

Objectives of the NCMS

The National Critical Mineral Stockpile programme has been designed to:

• Establish a two-month reserve of key rare earth elements and other strategic minerals to ensure supply security.
• Encourage private sector participation in the stockpiling, procurement, and management process.
• Complement India’s policy drive for domestic rare earth magnet production and critical mineral processing.
• Serve as a buffer mechanism against market volatility, export restrictions, or geopolitical disruptions in the global mineral trade.

According to government officials, the initial phase will focus on rare earth elements, later expanding to include lithium, cobalt, nickel, graphite, and titanium, among others—minerals essential for batteries, semiconductors, and renewable technologies.

Strategic Importance of Rare Earth Elements

Rare earth elements (REEs) are a group of 17 chemically similar metallic elements, including neodymium, praseodymium, dysprosium, europium, cerium, and gadolinium. Their exceptional magnetic, optical, and electrical properties make them indispensable in the manufacture of:

• Electric vehicle motors and batteries
• Wind turbine generators
• Smartphones, laptops, and semiconductors
• Defence and aerospace systems

India’s growing reliance on such technologies underscores the urgency of securing REE supply chains to support its net-zero emissions and green industrialisation goals.

Implementation Framework

The NCMS will be implemented under the supervision of the Ministry of Mines, in coordination with the Ministry of Heavy Industries and the Department of Science and Technology. Its operational model includes:

• Creating strategic stockpiles of processed rare earth oxides and magnets.
• Developing storage infrastructure for safe preservation and rapid deployment.
• Leveraging public–private partnerships (PPPs) for procurement and logistics.
• Encouraging participation of private miners, refiners, and technology firms.

The initiative is financially linked to the ₹500 crore fund earmarked under the National Critical Minerals Mission, aimed at “guarding against supply disruptions and ensuring mineral availability for domestic use.”

Complementary Schemes and Investment

The NCMS is closely aligned with the ₹7,300 crore incentive scheme approved by an inter-ministerial panel to promote the domestic production of rare earth magnets, with a target of producing 6,000 tonnes over five years. This scheme seeks to:

• Strengthen India’s capability to process and refine REEs.
• Reduce import dependency on China and other external suppliers.
• Establish India as a competitive manufacturing base for critical mineral technologies.

In addition, India has conducted five tranches of auctions for 55 strategic mineral blocks—34 of which have been awarded—with a sixth tranche launched recently to expand exploration and mining of rare earth-rich deposits.

India’s Rare Earth Resources

India possesses significant rare earth oxide reserves estimated at 7.23 million tonnes, contained within 13.15 million tonnes of monazite. These deposits are primarily located in:

• Andhra Pradesh
• Odisha
• Tamil Nadu
• Kerala
• West Bengal
• Jharkhand
• Gujarat
• Maharashtra

Despite its geological wealth, India’s technological capacity for REE extraction and separation remains limited. Most domestic monazite is held by public-sector entities such as the Indian Rare Earths Limited (IREL), which primarily processes ilmenite and monazite for thorium and light rare earths.

Global Context and Trade Dynamics

The establishment of the NCMS also reflects broader geopolitical and economic trends:

• China’s export curbs have led to global price fluctuations and uncertainty in the clean technology supply chain.
• The United States and European Union are investing heavily in critical mineral alliances and domestic refining capacities.
• US President Donald Trump’s announcement of a potential 100% tariff on Chinese imports in response to these restrictions further heightened trade tensions.

India’s initiative thus aligns with the strategies of other major economies to secure strategic mineral independence, diversify supply chains, and ensure stable inputs for the global transition to renewable energy.

Challenges and Limitations

While the NCMS marks a critical step forward, several challenges persist:

• Technological barriers in separating and refining rare earth elements from monazite.
• Limited domestic production capacity and dependence on imported refined materials.
• Environmental and regulatory concerns related to mining and waste disposal.
• Need for advanced research and partnerships in processing technologies and magnet manufacturing.

Future Outlook

The government intends to expand the scope of the NCMS beyond rare earth elements to include other high-demand minerals such as lithium, cobalt, nickel, and copper, vital for battery storage, electric mobility, and grid-scale renewable systems.
Strategically, the NCMS is expected to:

• Enhance India’s resource security for green and high-tech industries.
• Strengthen supply chain resilience amid global disruptions.
• Support the Make in India and Atmanirbhar Bharat (self-reliant India) initiatives.
• Encourage innovation and private sector investment in mineral processing and recycling.

Significance

The National Critical Mineral Stockpile represents India’s transition from a resource-dependent importer to a strategic stakeholder in the global critical minerals ecosystem. It is a proactive measure to mitigate geopolitical risks, safeguard the nation’s green technology infrastructure, and secure a sustainable pathway toward economic and energy independence.