India Launches First Critical Mineral Auctions to Boost Domestic Mining

India has launched its first-ever auction of critical and strategic minerals, offering 20 blocks across seven states and Jammu & Kashmir. These blocks include a significant 5.9-million-tonne lithium reserve in Reasi district, Jammu & Kashmir. This initiative aims to enhance domestic exploration, reduce import dependency, and support India’s clean energy goals.

Union Minister Pralhad Joshi emphasized the auction’s role in securing a stable supply chain for critical minerals essential for India’s energy transition and achieving net-zero emissions by 2070. Minerals like lithium, titanium, nickel, copper, and rare earth elements are critical for clean energy technologies and national security.

The auction follows mining law amendments during the monsoon parliamentary session, enabling private-sector participation in mining these essential resources. Spread across Bihar, Gujarat, Jharkhand, Odisha, Tamil Nadu, Uttar Pradesh, Chhattisgarh, and Jammu & Kashmir, most blocks are offered on a composite license for exploration and extraction, while four are reserved for mining leases only.

Conducted online in a two-stage process, bidders will be evaluated based on the highest percentage value quoted for mineral dispatch. Technical bids require both digital and physical submissions. This process aligns with India’s goal to strengthen its position in global clean energy markets while fostering economic and environmental sustainability.

The government’s move to domesticate mining operations underscores its commitment to bolstering energy security, creating jobs, and establishing India as a leader in the global energy transition.