Why India Must Act Fast to Control the Midstream of Critical Minerals

The global scramble for critical minerals is no longer a distant risk — it is a live geopolitical and economic contest. As countries race to secure supply chains for clean energy, electric vehicles, semiconductors and digital infrastructure, the real struggle is not over mining or final manufacturing. It is over the midstream: the processing and refining stage that converts raw ore into high-purity, industrial-grade materials. This is where strategic power now resides, and unless India moves with urgency, it risks locking itself into permanent dependence.

Why the midstream is where real power lies

While mining attracts headlines, value and leverage concentrate in processing. Control over refining determines who supplies battery-grade lithium, magnet-grade rare earths, and high-purity cobalt and graphite — materials without which clean technologies cannot function.

Today, the global midstream is overwhelmingly concentrated. China accounts for close to 90% of processing capacity for several critical minerals, including lithium, cobalt, graphite and rare earth elements. Even when ores are mined in countries like Australia or Chile, they are often shipped to China for refining before entering global supply chains. This asymmetry gives Beijing disproportionate leverage over green and digital transitions worldwide.

India’s first challenge: securing reliable feedstock

For India, building domestic processing capacity begins with securing raw material supply. The Geological Survey of India plans to undertake 1,200 exploration projects by 2031 — an essential step for long-term self-reliance. But mining timelines are unforgiving: developing a new mine can take 10–15 years.

This makes overseas sourcing unavoidable in the short to medium term. India must therefore pursue long-term offtake agreements, equity stakes, or outright acquisition of mining rights in resource-rich countries. These arrangements can shield domestic processors from supply disruptions and price volatility.

The responsibility currently lies with Khanij Bidesh India Limited (KABIL). But the global race for assets is intensifying, and hesitation risks exclusion. Strategic mineral stockpiles should also be created to buffer geopolitical shocks and market swings.

From intent to infrastructure: building the midstream backbone

Processing facilities are capital-intensive and infrastructure-hungry. Reliable power, water availability, transport connectivity, and testing facilities are prerequisites. Without coordinated planning, projects risk delays and chronic underutilisation.

India has taken some important steps. In 2023, it notified a list of 30 critical minerals, clarifying national priorities. This was followed by the launch of the National Critical Mineral Mission (NCMM), which aims to address the entire value chain — from exploration and mining to recycling.

The mission envisages four critical mineral processing parks and self-sufficiency in at least five minerals. To make this real, India must rapidly identify sites near ports or mineral corridors, ensure single-window clearances, and attract anchor investors. Shared refining, testing and certification infrastructure will be key to lowering entry barriers.

Leveraging strategic partnerships for technology access

India does not need to reinvent every processing technology from scratch. Strategic partnerships can accelerate capability-building. Australia is a natural partner, given its mineral endowment and alignment with India’s interests. The India–Australia Critical Minerals Investment Partnership already includes collaboration on processing technologies for minerals like titanium and vanadium.

Similarly, Japan offers expertise in high-purity metallurgy; Germany brings advanced separation and refining processes; and the UK — which has identified India as a priority partner under its critical minerals strategy — provides opportunities in standards, refining and sustainability frameworks. The goal should be joint ownership of midstream assets, not a buyer–seller relationship that perpetuates dependence.

The human capital and R&D gap

Advanced processing is technologically demanding. It requires expertise in materials chemistry, metallurgy, hydrometallurgy, and process control — areas where India remains thinly staffed.

Institutions such as the IITs, CSIR laboratories, and the Centres of Excellence under the NCMM must be backed with sustained funding. Collaborative R&D with global technology centres can help develop indigenous process flowsheets tailored to India’s diverse ore grades and environmental conditions. Crucially, laboratory breakthroughs must be bridged to commercial scale through pilot plants and dedicated R&D financing.

Creating market certainty for private investment

Even with infrastructure and technology, private investment will not flow without predictable demand. The government can play a catalytic role by mandating that downstream industries progressively source a portion of processed critical minerals from domestic refiners.

Price-floor mechanisms can protect early-stage processors from market volatility, while calibrated import duties can prevent predatory undercutting — particularly from China — without undermining competitiveness. Public–private partnerships for common refining, logistics and testing infrastructure can further de-risk investments.

The strategic stakes for India

Critical mineral processing is the missing link between geological potential and industrial power. Without it, India risks remaining a price-taker in clean technology supply chains, vulnerable to external shocks and strategic coercion.

With it, India can anchor itself in global value chains, strengthen energy security, and claim leadership in the green transition. The window is narrow, the competition fierce, and the midstream unforgiving to late entrants. Acting now is not optional — it is strategic necessity.