India plans strategic reserve of critical minerals for defense use

India is preparing to create a strategic reserve of critical minerals to meet emergency requirements in defense manufacturing, a senior government official said on Saturday.

This marks the first time the country has publicly disclosed such a plan.

Rajesh Kumar Singh, a top Ministry of Defence official, said the reserve would help “tide over immediate requirement” whenever shortages arise. He was speaking at a media event hosted by the Business Standard in New Delhi.

Key defense equipment, such as missiles, aircraft, radars, and warships, depends on critical minerals. Disruptions in supply could severely weaken defense preparedness, Singh noted.

The announcement comes against the backdrop of recent supply chain disruptions.

Rare earth exports from China collapsed in April after Beijing imposed controls on certain minerals. The restrictions hit the supply of rare earth magnets, where China holds 90% of global output, affecting industries from electric vehicles to wind turbines. Although Beijing has eased restrictions, the earlier curbs prompted Western nations to seek alternative sources.

India has already begun to take steps to secure access to these resources. Earlier this month, the government classified rare earth mines as “strategic projects.” The move is expected to cut down procedures and allow faster environmental clearances, making mining easier, Singh said.

The cabinet also approved a 15 billion rupee ($170 million) incentive program to boost recycling of critical minerals from batteries and e-waste.

“India does have reasonable stocks of critical minerals by all accounts, and we should be able to better utilize them in the future,” Singh added.