In a strategic move, India has suspended the Indus Waters Treaty with Pakistan. The impact will be felt when drought sets in on the other side of the border. Conversely, imagine a scenario when nations exporting critical minerals to India decide to halt supply.
A change in geopolitics can turn friend into foe, a cross-border conflict between adversaries such as Russia and Ukraine can disrupt the supply chain, or the threat of export restrictions can become a concern for raw material sourcing (think of China and its hold on rare earths). Hence, there is a need to be self-sufficient in the production of critical minerals, metals, and rare earths, which will help increase indigenous defence production. To retain the military edge, the country must continue to enhance weaponry with minimal dependence on the import of key input materials.
India’s military spend as a share of the GDP is 2.3%, while Pakistan spends 2.7% and Israel 8.8%, according to the Stockholm International Peace Research Institute report for 2025. A Defence Ministry press release says 65% of defence equipment is now manufactured within India, a significant shift from the earlier import dependence of 65-70%. The constituents of indigenous defence capability include 16 defence public sector undertakings, over 430 licensed companies, and more than 16,000 MSMEs.
As for rupee value, India’s defence production reached ₹1.27 lakh crore in the financial year 2023-24, marking a 174% rise since 2014-15, which affirms the transformation ushered in by the “Make in India” initiative. Defence exports hit a record ₹21,083 crore in 2023-24, expanding 30 times in a decade, with exports to 100-plus countries. The spurt in exports can be attributed to the Union government’s resolve to become “Atmanirbhar” (self-reliant) in military supplies.
According to Jay Vinayak Ojha, Research Fellow at the Vidhi Centre for Legal Policy, the DRDO’s Akash air defence system, the domestically upgraded L/70 guns, and BrahMos missiles have proved themselves in the recent India-Pakistan conflict. What else do we manufacture and export? Advanced towed artillery guns (ATAGs), Dornier-228 aircraft, mine-protected vehicles, simulators, radars, Pinaka rockets and launchers, body armour, ammunition, thermal imagers, and components of small arms. Soon, like-minded nations will likely source more “Made in India” weapons, reiterating the need to sustain current production levels within the country.
Essential minerals
According to the SFA (Oxford), a value chain consultancy, critical minerals are essential in modern defence technologies. They enhance performance, durability, and efficiency of surveillance, targeting and navigation, and are a key input in weapon systems. Titanium, tungsten, nickel, lithium, zirconium, and other critical minerals and metals are used in a variety of military equipment such as aircraft, aircraft carriers, helicopters, and armoured personnel carriers. Precision-guided missiles rely on a range of critical minerals for superior performance.
What about rare earth elements (REEs)? The cohort of 17 metallic elements with similar chemical properties enables advanced radar, sonar, laser guidance, communication, and propulsion technologies, ensuring superior precision, stability, and resilience in combat environments. Their role in laser weaponry, and military-grade electrical equipment makes them indispensable for national security and technological superiority. They are an essential input in the production of magnets for guidance systems in precision-guided munitions such as missiles. Magnets made from rare earths such as neodymium and samarium are utilised in unmanned aerial vehicles, bombs, propulsion systems, and other military equipment. For example, an advanced fighter aircraft can contain over 400 kg of REEs in its electric motors, electronic warfare systems, and radars.
Copper has been notified as a “critical mineral” by the Union Coal and Mines Ministry. The refined product is used extensively in military aircraft and naval and Coast Guard ships due to its inherent ability to resist corrosion. When combined with lead and nickel, copper helps produce military gear and body armour that can withstand impact and degeneration. Due to its excellent electrical conductivity and thermal properties, copper finds application in electrical wiring, connectors, components of electronic systems, and tanks and missiles. Copper alloys, such as phosphor bronze, aluminium bronze, silicon bronze, copper-chromium alloys, copper-zirconium alloys, and copper-tungsten, offer a range of properties suitable for various defence applications. Copper-nickel alloys, such as C70600 (90-10) and C71500 (70-30), are essential for marine environments in defence applications.
Drones, which were extensively used in the recent India-Pakistan conflict, require copper, carbon fibre, aluminium, plastic, lithium-ion, and silicon. As for aluminium, more than 80% of aircraft are made from this lightweight metal, which is strong enough to carry heavy loads. The National Critical Minerals Mission launched in 2024 is aimed at reinforcing India’s critical mineral value chain across all stages from exploration and mining to beneficiation, processing, and recycling of end-of-life products, an initiative designed to ensure self-sufficiency in fulfilling the demand for critical minerals. How much of the critical minerals and metals are available in India? How many domestic companies are engaged in mining and production?
Critical reserves
Copper and cobalt ore: As per a report published by the World Economic Forum (WEF) in January 2025, India is blessed with vast mineral reserves, yet only about 20% of India’s geological wealth has been explored to date. India has approximately 163.9 million tonnes of copper reserves, and approximately 44.9 million tonnes of cobalt ore resources.
Rare earths: With reserves of 6.9 million tonnes, India ranks third globally in REEs, with China and Brazil at No. 1 and 2, respectively. India produced 2,900 million tonnes of rare earths in 2024, according to Investing News Network.
However, there is vulnerability in some of the essential minerals. India is dependent on other countries for imports of lithium, nickel, vanadium, niobium, and rhenium. Such reliance can lead to supply disruptions and price fluctuations.
Companies in the field
In April, a financial website named ‘Equitymaster’ ranked the top five Indian companies to watch out for in the race for rare and critical minerals:
Vedanta: The mining and metals major is active in zinc, silver, lead, aluminium, copper, nickel, oil, and gas. As one of the largest aluminium producers in India, it accounts for 60% of the country’s total aluminium output. The group holds a strong market position in the zinc segment and is India’s sole producer of nickel.
NALCO: The Navaratna public sector enterprise under the Ministry of Mines is one of Asia’s largest integrated primary aluminium producers. It is a global leader in producing bauxite and alumina at a low cost. A residue in the bauxite refining process yields rare earth elements such as scandium and yttrium. In 2024-25, NALCO secured a 50-year mining lease from the Odisha government for bauxite mines, which contain 75 million tonnes of mineable reserves. In addition, it has a partnership with the Bhabha Atomic Research Centre to develop technologies for extracting rare earth elements.
Hindustan Copper: The vertically integrated copper producer engages in all stages of copper production, from mining to the final conversion into marketable products. HCL holds mining leases for over 80% of the country’s copper reserves. The company plans to allocate ₹4.5 billion to ₹5 billion annually toward mine expansion to meet the surge in demand from industrial users.
Coal India: The public sector undertaking has recently signed an MoU with Indian Rare Earths to collaborate on the development of critical minerals, including rare earth elements. In addition, Coal India is also exploring lithium blocks in Argentina and engaging with Chile to secure the supply of critical minerals.
NMDC: The Navaratna PSU is India’s largest iron ore producer, accounting for around 20% of the nation’s demand. Going beyond iron ore, the NMDC has partnered with Hancock Prospecting of Australia for lithium and cobalt mining. The company is expected to diversify into nickel.
The contribution of the above five companies to critical minerals will spur quality and productivity at hundreds of domestic companies engaged in defence manufacturing and green energy transition initiatives. As progress inspires further progress, as the wheel of growth reaches a new velocity, we can expect India to continue to rise in prominence on the world stage in critical minerals, defence manufacturing, and green energy transition.
(The writer is a former journalist and advertising professional, now serving as a communications consultant; views are personal)
Published – May 25, 2025 09:00 am IST