Lok Sabha Question No. 2831 (UNSTARRED), answered on 2025-03-18
Subject: Import of Critical Minerals for EVs
Ministry: HEAVY INDUSTRIES
Asked by: Shri B Y Raghavendra

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2831

ANSWERED ON 18.03.2025

## IMPORT OF CRITICAL MINERALS FOR EVs

## 2831.  SHRI B Y RAGHAVENDRA:

Will the Minister of HEAVY INDUSTRIES be pleased to state:

(a) whether the promotion of electric vehicles through the FAME India Scheme (Phase-I and II) has led to an increase in the import of critical minerals like lithium and cobalt, if so, the data on these imports during the last five years;

(b) the main challenges faced by the country in securing critical minerals for EVs;

(c)  the  steps  taken  to  reduce  India's  dependence  on  imported  lithium,  cobalt,  and  other  key materials required for EV batteries; and

(d) whether the Government is working on any long-term strategy, such as domestic exploration, partnerships,  or  recycling  initiatives,  to  ensure  the  availability  of  lithium  and  cobalt  for  the growing EV market?

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

(a): No such study has been conducted by the Ministry of Heavy Industries.

(b): The country is greatly dependent on other Asian countries for raw materials, mineral processing, battery and other basic requirements for production and promotion of e-vehicles in the country, since the basic raw material for production of electric vehicles is lithium and other critical  materials.  At  present,  investments  in  manufacturing  and  overall  value  addition  for Advanced Chemistry Cells (ACCs) are negligible in India and almost entire domestic demand of ACCs is still being met through imports. In order to reduce dependency of imported ACC battery for electric vehicles, the Government on 12 th May, 2021 approved a Production Linked Incentive (PLI) Scheme for manufacturing of Advance Chemistry Cell (ACC) in the country. The total outlay of the scheme is Rs.18,100 Crore for a period of 5 years.  The scheme envisages to establish a competitive ACC battery manufacturing set up in the country (50 GWh).

(c) & (d): 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 ScheduleI  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 & 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 202425.

In the Union Budget 2025-26, the Government proposed to fully exempt cobalt powder and waste, the scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals to secure their availability for manufacturing in India and promote more jobs for India's youth.

Ministry  of  Mines  is  engaged  in  various  multilateral  and bilateral  platforms  for strengthening the critical minerals value chain, focussing on multiple objectives, including the processing and recycling of critical minerals such as Minerals Security Partnership (MSP) and the Indo-Pacific Economic Framework (IPEF), initiative on Critical and Emerging Technologies (iCET), the UK-India Technology Security Initiative (TSI) and others.

The Ministry  of  Mines  has  taken  a  significant  step  to  acquire  overseas  mineral  assets through the establishment of a joint venture company, Khanij Bidesh India Ltd. (KABIL).  Its overarching mission is to identify  and acquire overseas mineral assets that hold critical and strategic significance, specifically targeting minerals like Lithium, Cobalt and others. KABIL has  signed  an  Exploration  and  Development  Agreement  with  CAMYEN,  a  state-owned enterprise  of  Catamarca  province  of  Argentina,  for  Exploration  and  mining  of  Five  Lithium Brine Block in Argentina with an area of around 15,703 Ha.