29 January 2026·PIB

Under PM Modi’s Vision, India–Canada Talks on Clean Mobility and Critical Minerals Yield Positive Outcomes

In this note

1. At a Glance

Bilateral high-level engagement between India's Ministry of Heavy Industries and Canada's Ministry of Natural Resources on critical minerals, EVs, batteries and sustainable supply chains [1].
Anchored in Viksit Bharat@2047 and India's Net Zero by 2070 vision [1].
Relevant for UPSC GS-II (bilateral relations) and GS-III (mineral security, clean energy, EV ecosystem).

On 29 January 2026, Union Minister for Heavy Industries & Steel H.D. Kumaraswamy met Canadian delegation led by Tim Hodgson, Minister of Natural Resources, Canada, at Udyog Bhawan, New Delhi [1].
Both sides agreed to continue structured dialogue on critical minerals, EV ecosystem, batteries, advanced manufacturing and sustainable supply chains [1].
Comes amid global de-risking from China-dominated critical mineral processing and follows a thaw in India–Canada ties after the 2023-24 diplomatic strain.

2023: Ministry of Mines released list of 30 critical minerals for India (Li, Co, Ni, Cu, REE, Graphite, etc.) [2][5].
23 July 2024: Union Budget 2024-25 announced Critical Mineral Mission [2].
11 Sept 2024: Cabinet approved PM E-DRIVE Scheme (replacing FAME-II / EMPS) [3].
29 Jan 2025: Cabinet approved National Critical Mineral Mission (NCMM) with ₹34,300 crore outlay over 7 years [2].
2025: PM E-DRIVE tenure extended from 31 Mar 2026 to 31 Mar 2028 within same outlay [4].
29 Jan 2026: India–Canada bilateral on clean mobility & critical minerals [1].

Lead Ministry (India side): Ministry of Heavy Industries (Minister: H.D. Kumaraswamy) [1].
Counterpart (Canada): Ministry of Natural Resources (Minister: Tim Hodgson) [1].
Venue: Udyog Bhawan, New Delhi [1].
Focus areas: critical minerals, clean mobility, advanced manufacturing, sustainable supply chains, EV ecosystem, batteries [1].
NCMM outlay: ₹34,300 crore (₹16,300 cr govt + ₹18,000 cr PSU/private), 2024-25 to 2030-31 [2].
GSI exploration: 1,200 projects mandated FY25-FY31 [2].
PM E-DRIVE outlay: ₹10,900 crore [3][4]; supports 14,028 e-Buses, 24.79 lakh e-2W, 2.05 lakh e-3W (L5), 1.10 lakh e-rickshaws [3].

Geopolitical / Strategic

Diversifies India's critical mineral sourcing away from China (which controls ~60% mining and ~80% processing of REE globally).
Canada is a member of the Minerals Security Partnership (MSP) alongside India; bilateral fits within MSP architecture.
Signals normalisation of India–Canada ties post the 2023 Nijjar diplomatic row.

Economic

Battery-grade lithium, cobalt, nickel and graphite are inputs to PM E-DRIVE-supported EV manufacturing [3].
Canada hosts major reserves of potash, uranium, nickel, cobalt, REE; complementary to India's processing ambitions under NCMM [2].

Environmental

Aligns with Net Zero by 2070 (announced at COP26, Glasgow) and Panchamrit commitments [1].
Clean mobility cuts transport-sector emissions (~14% of India's GHG inventory).

Scientific / Technological

Cooperation on battery cell chemistry, recycling and end-of-life recovery — NCMM explicitly covers recovery from tailings & overburden [2].

Administrative

Ministry of Heavy Industries (EVs) and Ministry of Mines (NCMM) — inter-ministerial coordination essential.

23 Jul 2024: Critical Mineral Mission announced in Budget [2].
11 Sept 2024: PM E-DRIVE approved by Cabinet [3].
29 Jan 2025: NCMM formally approved by Cabinet [2].
2025: PM E-DRIVE extended to 31 March 2028 [4].
29 Jan 2026: India–Canada ministerial on clean mobility & critical minerals [1].

India–Canada talks on critical minerals held at Udyog Bhawan, New Delhi on 29 Jan 2026 [1].
Indian side led by Minister of Heavy Industries & Steel, not External Affairs [1].
Canadian counterpart: Minister of Natural Resources (Tim Hodgson) [1].
NCMM outlay: ₹34,300 crore over 7 years (FY25–FY31) [2].
GSI to conduct 1,200 critical mineral exploration projects under NCMM [2].
India's critical minerals list: 30 minerals notified by Ministry of Mines in 2023 [2].
PM E-DRIVE outlay: ₹10,900 crore; notified 29 Sept 2024 [3][4].
PM E-DRIVE valid till 31 March 2028 (extended from 2026) [4].
PM E-DRIVE supports 14,028 e-Buses [3].
Net Zero target year for India: 2070 (Glasgow COP26 pledge) [1].
NCMM covers full value chain: exploration → mining → beneficiation → processing → recycling [2].
Implementing ministry for EV schemes: Ministry of Heavy Industries (not MoRTH, not MNRE) [3].

GS-II: India and its neighbourhood / bilateral groupings — India–Canada relations; Minerals Security Partnership.
GS-III: Indian Economy (infrastructure, energy); Environment (climate change); Science & Tech (indigenisation of EV value chain).
Likely question stems:
"Securing critical mineral supply chains is central to India's energy transition. Examine."
"Discuss the strategic rationale of India–Canada cooperation in clean mobility in the context of Viksit Bharat@2047."
"Evaluate the National Critical Mineral Mission as an instrument of resource diplomacy."

National Critical Mineral Mission (NCMM) — flagship policy framing the bilateral.
PM E-DRIVE Scheme — domestic demand pillar for EV ecosystem.
Minerals Security Partnership (MSP) — multilateral forum India joined in 2023.
MMDR Amendment Act, 2023 — auctioning of critical mineral blocks by Centre.
Panchamrit & Net Zero 2070 pledge — climate commitments backdrop.
PLI Scheme for Advanced Chemistry Cell (ACC) batteries — ₹18,100 cr; complementary to mineral sourcing.
India–Australia Critical Minerals Investment Partnership — comparable bilateral.
Khanij Bidesh India Ltd (KABIL) — PSU for overseas mineral acquisition.

PM E-DRIVE is under Ministry of Heavy Industries, NOT MoRTH or MNRE [3].
NCMM is under Ministry of Mines, not Ministry of Heavy Industries — though both intersect.
India's Net Zero year is 2070, not 2050 or 2060.
PM E-DRIVE replaced FAME-II / EMPS — it is not a continuation of FAME.
The 30-mineral list (2023) is by Ministry of Mines, distinct from a separate IEA / strategic minerals list.
India–Canada engagement here was ministerial bilateral, not an MoU/treaty signing.