India Advances Global Search for Strategic Minerals with 6th Auction Tranche and International Deals

Hyderabad, Sept 16, 2025 – India has accelerated its efforts to access key minerals essential for renewable energy as well as electric mobility. Inaugurating the 6th tranche of auctions of critical mineral blocks, Union Coal and Mines Minister G Kishan Reddy declared that the government is progressing domestic reforms as well as overseas acquisitions in order to bridge the growing demand for electric vehicle batteries as well as clean energy technologies.

Foreign Mineral Acquisitions in the Spotlight

Joint venture enterprise Khanij Bidesh India Limited (KABIL) under the Ministry of Mines is driving India’s global mineral strategy. The corporation has already bought up lithium blocks in Argentina and is negotiating advanced MoUs with resource-abundant countries such as Zambia and Chile. At the same time, India is creating strategic alliances through MoUs with Japan, Australia, Peru, and the UAE to establish improved supply security. These actions come as the global competition for lithium, cobalt, and nickel — all critical to EV batteries and clean technologies — becomes fiercer.

Strong Financial Commitment and Policy Reforms

Reddy highlighted that India has allocated nearly USD 4 billion to catalyze the seven pillars of the National Critical Mineral Mission, surpassing the United States’ USD 1 billion intended for similar programs. The government has also announced a string of reforms under the revised MMDR Act 2025, such as the setting up of coal and mineral exchanges, open auction mechanisms, and incentives for the domestic recycling facility.

Significantly, the government has dismantled import duties on 23 key minerals identified, which would facilitate industries in obtaining raw material and increasing production. Deep-seated mineral exploration facilities are also being established, with emphasis laid on lithium, cobalt, and rare earth minerals.

6th Tranche of Auctions

The recently launched 6th tranche comprises 23 blocks of key minerals located in many different states. For the very first time, such states as Telangana, Punjab, Uttarakhand, and West Bengal are joining the process of auctioning critical minerals, a major development that’s expanding India’s exploration area. The auction should see robust interest from both national and international mining companies.

Increased Flexibility for Industry

In a significant relief to industries, the government has also lifted the 50 percent open sales limit on captive mines so that producers can sell more of their production in the open market. This would enhance operational flexibility, boost investments, and fast-track the pace of domestic mineral production.

Global Context and Latest Developments

India’s aggressive mineral strategy coincides with the major economies, such as the US, EU, and China, accelerating moves to secure critical mineral supply chains. Under net-zero scenarios, the world’s demand for lithium alone is set to increase over 40 times by 2040, says the International Energy Agency (IEA). India’s efforts to acquire overseas assets resonate with this wider race to dominate future energy resources.

KABIL has also made overtures to African countries outside Zambia — such as Namibia and the Democratic Republic of Congo — for collaborative exploration ventures. In the meantime, local institutions like the Indian Institute of Technology (IIT) Hyderabad are being enlisted to set up Centres of Excellence for cutting-edge mineral processing and R&D.

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