The Indian government is preparing to launch the National Critical Mineral Stockpile (NCMS), an initiative designed to ensure the steady availability of rare earth elements (REEs) critical to strategic industries.

The program seeks to mitigate risks arising from global supply disruptions, particularly following China’s recent export curbs on rare earth magnets essential for electric vehicles, wind turbines, and advanced electronics.

According to officials, the NCMS will initially target the stockpiling of a two-month reserve of rare earth elements. The government has proposed an active public–private participation model to accelerate procurement, processing, and storage. The plan forms part of India’s broader effort to create resilient supply chains in materials crucial for defence, renewable energy, and high-tech manufacturing.

While the immediate focus rests on rare earth elements, the NCMS framework will later incorporate other critical and strategic minerals, including lithium, cobalt, and nickel. This gradual expansion aligns with the objectives of the National Critical Minerals Mission (NCMM), which has earmarked ₹500 crore to counter supply disruptions and guarantee resource security for domestic industries.

The NCMS complements India’s existing push to localize rare earth production. Earlier this year, an inter-ministerial panel approved an incentive package of ₹7,300 crore to promote rare earth magnet manufacturing, targeting a cumulative output of 6,000 tonnes within five years. These magnets form the technological backbone of EV motors, wind turbines, radar systems, and electronics used in aerospace and defence applications.

Global volatility intensified after China imposed new restrictions on rare earth magnet exports, tightening its control over upstream processing and downstream manufacturing. The situation escalated following US President Donald Trump’s announcement of potential 100% tariffs on Chinese rare earth imports, heightening the risk of global supply chain fragmentation. India’s move aims to insulate its industries from these geopolitical uncertainties while consolidating domestic strategic autonomy.

India possesses an estimated 7.23 million tonnes of rare earth oxide, primarily locked within 13.15 million tonnes of monazite deposits. These are located across coastal and inland regions in Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra. The Ministry of Mines has already conducted five rounds of auctions for 55 critical and strategic mineral blocks, with 34 successfully awarded, and recently launched the sixth tranche to accelerate sector development.

Despite large reserves, India’s technological limitations in extraction and refining pose a major constraint. The current domestic capacity for processing monazite to isolate rare earth oxides remains limited, forcing reliance on imports from China, Malaysia, and other global suppliers.

Experts argue that boosting indigenous extraction and separation technologies—through investments in hydrometallurgy, solvent extraction, and advanced material recycling—will be essential to make the NCMS viable.

The establishment of a national stockpile signals a strategic transition toward self-reliance in critical materials, positioning India to safeguard its renewable energy transition, defence manufacturing, and semiconductor ecosystem.

The NCMS and NCMM together are expected to stimulate private investment, research collaboration, and domestic refining infrastructure, helping India reduce its vulnerability to external supply shocks and strengthen its industrial competitiveness in the decade ahead.

Based On ET News Report