India must build strong mineral stockpile strategy

Source: The post India must build strong mineral stockpile strategy has been created, based on the article “Stockpiling critical minerals, a must” published in “Businessline” on 27th June 2025

UPSC Syllabus Topic: GS Paper 3 – Infrastructures

Context: The fragility of global supply chains—exposed by trade restrictions, extreme weather, and geopolitical tensions—has underscored the urgency for critical mineral stockpiling. For a resource-constrained country like India, this is essential to safeguard national security and drive its clean energy transition.

For detailed information on Critical Mineral Mission of India- Significance and Challenges read this article here

Strategic Importance of Critical Mineral Stockpiling

1. Global Supply Chain Vulnerabilities: Geopolitical tensions, export curbs, and the Covid-19 pandemic have highlighted the weaknesses of global supply chains. Countries like China, with integrated control over mining and processing, have used this leverage to their advantage.
2. India’s Urgent Needs: India’s dependence on imports for critical minerals—needed for clean energy and national security—makes stockpiling crucial. Strategic reserves can help ensure continuity amid global disruptions.
3. Lessons from Global Events: Export bans on minerals like gallium and germanium by China and global crises such as pandemics have reaffirmed the need for long-term planning through mineral reserves.

Learning from Global Best Practices

1. United States: The US maintains a National Defense Stockpile of critical materials like cobalt and rare earths. It also explores unconventional sources like seabed nodules, despite ecological challenges.
2. Australia and the EU: Australia’s $1.2 billion Critical Minerals Stockpile Plan supports domestic mining through government-backed purchases. The EU encourages member states to create national reserves and explore joint procurement models.
3. Asian Models: Japan, South Korea, and China: Japan, through JOGMEC, holds 60–180 days of reserves of key minerals. South Korea aims to cut import reliance by expanding reserves. China uses state-controlled reserves and export limits for geopolitical influence.

India’s Current Approach and Gaps

1. National Critical Minerals Mission (NCMM): India has launched NCMM to strengthen supply chains through exploration and partnerships. However, it lacks a concrete framework for national-level stockpiling.
2. Opportunities for Global Collaboration: India can collaborate internationally by co-developing storage, procurement, and offtake strategies. Multilateral platforms like the Quad and Minerals Security Partnership can be leveraged.
3. Need for a Comprehensive Strategy: Without structured reserves, India risks disruption in access to minerals essential for clean technology and economic resilience.

Action Plan for a Robust Stockpiling Framework

1. Establishing a National Stockpiling Alliance (NSA): NSA should design flexible procurement systems and develop storage infrastructure. It must also support recyclers by assuring offtake, attracting investment in recycling.
2. Forging Strategic International Partnerships: India should pursue joint ventures and shared reserves with countries like the US, Japan, and Australia. Engaging through platforms like the Indo-Pacific Economic Framework will be key.
3. Strengthening Domestic Capacity: Stockpiling must be integrated with initiatives to expand domestic exploration, refining, and recycling. This will enhance self-reliance and reduce long-term vulnerabilities.

Conclusion

By adapting global models and investing in partnerships, infrastructure, and domestic capacity, India can transform mineral stockpiling into a strategic pillar for energy security, economic stability, and geopolitical resilience.

Question for practice:

Examine how strategic mineral stockpiling can strengthen India’s national security and clean energy transition.