India is set to provide funding to research institutes for technical assistance to miners as part of its initiative to develop a critical minerals industry. This move aims to reduce the country’s heavy reliance on imports of lithium and rare earth minerals, which are essential for energy transition technologies.
Despite previous efforts, India’s attempts to establish a critical minerals mining sector have faced challenges. In June, the government awarded development rights for a lithium block in Chhattisgarh, but an auction for lithium blocks in Jammu and Kashmir failed due to low mineral concentrations and high extraction costs.
The government plans to allocate nearly $50 million to support collaborations between research institutes and companies to enhance extraction technology and improve beneficiation methods, which involve preparing mineral ores for processing into metals.
In a letter dated July 11, the Ministry of Mines instructed the CSIR-National Institute for Interdisciplinary Science and Technology (NIIST) to assist miners with extraction techniques tailored to the specific characteristics of critical minerals found in the auctioned blocks.
The letter emphasized the need for specialized extraction methods, as many critical minerals are not currently mined in India. The government will invite joint proposals from institutes and companies, with successful applications eligible for up to 75% of the total funding.
The Ministry of Mines and NIIST have not yet responded to requests for comments on the initiative.