Critical minerals are central to both clean energy transitions and energy abundance narratives. Examine India's strategy for diversifying critical mineral supply chains.

Lithium, cobalt and rare earths are the physical base of both agendas — batteries and magnets for the transition, and resilient supply chains for the "energy abundance" framing of the 2026 G20 Ministerial at Houston, where India pressed for secure, affordable and reliable energy [1]. India's strategy is broad but midstream-weak.

Why the dependence is acute

• India's non-fossil sources crossed 51.93% of installed capacity (5,13,730 MW, December 2025) yet supplied only 29.2% of actual generation in 2025-26 [2] — closing that gap needs storage and grid equipment, hence minerals.
• China supplied roughly 85–90% by quantity of India's permanent magnet imports during 2022-25 [3]; magnets drive EV motors and wind turbines.
• The chokepoint is processing, not ore — refining and magnet-making are geographically concentrated.

The diversification strategy

• Domestic value chain: the National Critical Mineral Mission (Cabinet, January 2025) commits Rs 16,300 crore plus about Rs 18,000 crore expected from PSUs over 2024-25 to 2030-31, covering exploration, mining, beneficiation, processing and recovery from end-of-life products [4].
• Midstream manufacturing: a Rs 7,280 crore scheme (November 2025) for integrated rare-earth permanent magnet capacity, with dedicated rare earth corridors announced in Budget 2026-27 [3].
• Circularity: recycling incentives make supply that no border can block.
• Minerals diplomacy: bilaterals with the United States and Canada at Houston target resource-rich and capital-rich partners simultaneously [1].

Limits

• G20 pillars are direction-setting, not binding; substance lies in bilaterals [1].
• Exploration-to-production gestation is long, while demand from e-mobility and defence is immediate [3].

India's approach has correctly shifted from securing mines to owning the refining and magnet stages, which is where leverage actually sits. Sustaining it requires faster clearances, firm offtake agreements with partner states, and scaling recycling into a regional hub. Doing so would let India meet its Paris commitments — already achieved five years early on non-fossil capacity [2] — without trading away energy security.