India, a growing industrial powerhouse, is exploring critical mineral clubs to secure and diversify its supply chains, a move gaining traction in July 2025. Led by policymakers and industry leaders in New Delhi, this initiative addresses the nation’s reliance on imports for minerals like lithium, cobalt, and rare earths, vital for EV batteries and renewables. Amid global supply chain disruptions and geopolitical tensions, the strategy, proposed by the Ministry of Mines, aims to foster international alliances, ensuring stable access by late 2025.
In This Article:
A Strategic Imperative
India imports over 80% of its critical minerals, with China dominating 60-70% of global supply. Recent shortages, exacerbated by U.S.-China trade wars and Russia-Ukraine conflicts, have pushed India to act. Critical mineral clubs—collaborative groups with nations like Australia, Canada, and Chile—offer joint exploration, production, and technology sharing. Announced on July 10, 2025, the plan builds on the 2023 Critical Minerals Mission, targeting self-sufficiency by 2030 amid rising demand for green tech.
Global Partnerships and Benefits
These clubs, inspired by OPEC-like models, could stabilize prices and reduce monopolies. India’s talks with the U.S. and EU, following the July 2025 Quad summit, signal intent to counter China’s dominance. Australia’s lithium reserves and Canada’s cobalt could diversify India’s sources, while joint ventures lower costs. Experts on X highlight potential deals with African nations like Zambia, though negotiations face hurdles over pricing and sovereignty.
Challenges Ahead
Despite promise, logistical and political barriers loom. Infrastructure gaps in India’s mining sector and environmental concerns slow progress. Some nations hesitate, fearing loss of control over resources. Legal frameworks for international agreements, still in draft as of July 2025, need refinement. Critics argue clubs may strain diplomatic ties if benefits skew toward larger economies, yet proponents see long-term resilience.
The Path Forward
As India ramps up its mineral strategy, critical mineral clubs offer a lifeline to secure supply chains. With the first pilot project slated for Q1 2026, success hinges on robust diplomacy and investment. This initiative could position India as a global leader in sustainable resource management, ensuring economic stability in an uncertain world.
-By Manoj H
