India to Develop Six-Month Stockpile of Strategic Minerals to Reduce Import Reliance

India Aims to Create Strategic Reserve of Critical Minerals to Mitigate Supply Disruptions and Price Volatility

India is planning to create a strategic reserve of critical minerals equivalent to six months of demand to protect its green energy and manufacturing sectors from global supply disruptions and price volatility. The Union ministries of mines and heavy industries are working on a framework to stockpile both imported and domestically sourced critical minerals such as lithium, cobalt, nickel, copper, and rare earth elements.

The proposed reserve is expected to serve as a long-term buffer for sectors including electric mobility, renewable energy storage, and electronics manufacturing, which are increasingly dependent on imported inputs. The initiative aligns with broader government efforts under the National Critical Minerals Mission, which has an outlay of Rs 16,300 crore aimed at strengthening domestic capabilities and securing supply chains across mining, processing, and recycling.

The move reflects rising concerns over global supply chain fragility and price swings in critical minerals markets. China's dominant position in the sector has amplified these concerns, with Beijing controlling a major share of rare earth supply chains, including about 60% of global mining output and nearly 90% of processing capacity. The issue came into sharper focus last year when China temporarily restricted exports of rare-earth magnets following trade tensions with the US, disrupting global supply chains.

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India's proposed reserve is aimed at reducing exposure to external shocks. Experts say that the country's consideration to build strategic critical mineral reserves comes from growing concerns over supply chain vulnerabilities and price volatility in global mineral markets. The International Energy Agency notes that setting up such buffers globally could require investments worth tens of billions of dollars.

Critical Mineral Demand Projections

A February 2026 report by Deloitte and Ficci estimates strong growth in India's consumption of critical minerals. Copper demand is expected to rise to at least 3,000 kilotonnes by FY30 from 1,875 kilotonnes in FY25, while nickel demand could increase to 212-276 kilotonnes from about 128 kilotonnes. Lithium demand, driven by electric vehicles and energy storage, may surge nearly tenfold to 21-30 kilotonnes by FY30 from 3.4 kilotonnes in FY25.

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Industry participants support the move, with Pranati Kohli, lead for public affairs at Lohum Cleantech, stating that a strategic reserve is increasingly necessary given global uncertainties. The initiative is also expected to reduce external dependence and improve supply security, especially given recent global disruptions.

However, challenges remain in building and maintaining such reserves, particularly due to dependence on imports and the time required to scale up domestic extraction and refining capacity. A battery industry executive notes that stabilising supply chains will take time despite strong policy intent.