India is preparing to set up a strategic reserve of critical minerals for defence manufacturing, with the aim of ensuring uninterrupted supplies during emergencies. This is the first public confirmation of such an initiative, revealed by Rajesh Kumar Singh, a senior Ministry of Defence official, at a media forum in New Delhi.

The reserve is expected to serve as a buffer against supply shocks that could cripple the production of key military platforms such as fighter aircraft, missiles, radars, and warships. The move comes after recent global disruptions highlighted vulnerabilities in India’s defence-industrial supply chain.

China’s imposition of export controls on rare earths earlier this year severely impacted industries worldwide, particularly defence, electronics, EVs, and renewable energy. With China holding nearly 90% of the global rare-earth magnet output, the restrictions sent a strong warning about over-dependence on a single supplier country.

Although Beijing has since lifted some of the restrictions, its earlier decision has underscored the risk of geopolitical weaponization of critical minerals. Western nations and major economies have since accelerated diversification efforts, and India appears to be following a similar course.

As part of broader reforms, India has already declared rare earth mining as “strategic projects.” This classification is intended to fast-track approvals, especially environmental clearances, enabling new mining operations to come online faster.

The government has also launched a ₹1,500 crore incentive program to encourage recycling of critical minerals from waste streams, including used batteries and electronic scrap. This is expected to complement primary mining and help build a circular economy in rare-earth supply.

According to Singh, India has “reasonable stocks” of critical minerals that, with careful management and utilization, can meet future demands. The plan for a strategic reserve adds another layer of resilience, ensuring that defence readiness is not compromised in the event of global supply shocks.

Based On ET News Report