Government Awards 19 Critical Mineral Blocks Across 10 States, Emphasizing Lithium and Rare Earth Extraction

Government of India Auctions 19 Critical Mineral Blocks

Key Highlights

• On March 23, the Government of India launched auctions for 19 critical and strategic mineral blocks across 10 states, including lithium-bearing and rare earth element (REE) deposits.
• The auction aims to strengthen domestic availability of minerals used in clean energy, manufacturing, and fertiliser sectors.

Mineral Block Details

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• The blocks are spread across 10 states, with Bihar leading with four blocks, followed by Odisha and Chhattisgarh with three each.
• The minerals on offer include:
  • Lithium
  • Rare earth elements
  • Tungsten
  • Graphite
  • Vanadium
  • Titanium
  • Glauconite
  • Rock phosphate

Policy Changes

• The government has revised auction rules to:
  • Tighten timelines for post-auction steps such as submission of performance security, upfront payments, and issuance of the letter of intent.
  • Allow insurance surety bonds to be used in place of bank guarantees, reducing upfront financial burden.
• The Mineral (Auction) Second Amendment Rules, 2025 and Mineral (Auction) Amendment Rules, 2026 streamline timelines and provide flexibility for bidders.

Auction Process

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• Sale of tender documents: March 30, 2026
• Last date for purchase: May 18, 2026
• Bids must be submitted: May 25, 2026
• Auction will be conducted on the MSTC platform, advised by SBI Capital Markets Limited and Mineral Exploration and Consultancy Limited (MECL).

Sectoral Benefits

• The minerals on offer are used across clean energy technologies, advanced manufacturing processes, and fertiliser production.
• Lithium, rare earth elements, and graphite are linked to clean energy and manufacturing, while rock phosphate is used in fertilisers.
• Rare earth elements and yttrium are used in advanced technologies and other strategic applications, while vanadium and titanium are used in industrial and manufacturing processes.