Lok Sabha Question No. 1527 (UNSTARRED), answered on 2025-07-29
Subject: Countering China's Curbs on Rare Earth Minerals
Ministry: HEAVY INDUSTRIES
Asked by: Shri Balashowry Vallabhaneni

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1527

ANSWERED ON 29.07.2025

## COUNTERING CHINA'S CURBS ON RARE EARTH MINERALS

## 1527.  SHRI BALASHOWRY VALLABHANENI:

Will the Minister of HEAVY INDUSTRIES be pleased to state:

(a) whether continuous meetings were held in the country recently between Indian and Japanese companies  for  EV  battery  and  mineral  collaboration  in  view  of  China's  curbs  on  rare  earth minerals;

- (b) if so, the details thereof; and

(c) whether any other alternatives are being planned by the Government to counter China's curbs on rare earth critical minerals and magnets?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

- (a): Society of Indian Automobile Manufacturers (SIAM) has informed that it does not have specific information of such meetings.
- (b): Does not arise in view of (a) above.
- (c): As per the information received from Ministry of Mines, the Union Cabinet has approved the launch of the National Critical Mineral Mission (NCMM) on 29 th January, 2025, for a period of seven years from 2024-25 to 2030-31, with a proposed expenditure of Rs.16,300 crore and an expected  investment  of  Rs.18,000  crore  by  Public  Sector  Undertakings  (PSUs)  and  other stakeholders.  The NCMM aims to secure a long-term sustainable supply of critical minerals and strengthen India's critical mineral  value  chains  encompassing  all  stages  from  mineral exploration and mining to beneficiation, processing, and recovery from end-of-life products.

In  order  to  boost  domestic  production  and  reduce  India's  dependence  on  imported lithium, cobalt and other key materials required for EV batteries, the Government of India has taken significant steps, which are as under:

The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) has been amended through the MMDR Amendment Act, 2023 w.e.f. 17.08.2023.  The Amendment Act, 2023 provides for:

- i. A list of 24 critical and strategic minerals in Part D of Schedule-I.
- ii. Omission of six minerals from the list of 12 atomic minerals in Part B of Schedule-I namely Lithium, Titanium, Beryl and beryllium bearing minerals, Niobium, Tantalum and Zirconium bearing minerals and their inclusion in the list of aforesaid 24 critical and strategic minerals.
- iii. Section 11D of the Act, which empowers Central Government to exclusively auction mining lease and composite license for critical and strategic minerals specified in Part D of the Schedule-I.
- iv. Exploration license for 29 minerals included in Schedule-VII of the Act.

In addition, Ministry of Mines has been empowered to auction blocks for grant of Exploration License through an order dated 21 st   October, 2024 under Section 20A of MMDR Act 1957.  Central Government has successfully auctioned 24 blocks of critical and strategic minerals in 04 tranches in 2024.

The exploration of critical minerals has been significantly increased.  Over the past three years, the Geological Survey of India (GSI) has undertaken 368 exploration projects focused on critical and strategic  minerals.    In  the  FY  2024-25,  195  projects  are  being  executed  and  227  projects  have  been approved for the upcoming financial year.

100% FDI is allowed under 'Automatic' route for mining and exploration of metal and non-metal ores.  A foreign company may incorporate an Indian subsidiary company or invest in an existing Indian Company to become eligible for grant of mining and exploration rights.

To support the critical minerals sector, Government has eliminated customs duties on 25 minerals and reduced Basic Customs Duties (BCD) on 2 minerals in the Union Budget for 2024-25.

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