India to build 4 critical mineral plants as US pact boosts push

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Four plants planned: India will set up critical mineral processing facilities in Odisha, Gujarat, Telangana and Maharashtra, with state governments allocating land.

Global partnerships grow: A new US-India framework aims to diversify supply chains, boost processing capacity and reduce dependence on China’s rare earth dominance.

Rapid sector progress: First-ever auctions of critical mineral blocks and intensified exploration are expected to deliver significant results within the next 12 months.

Four processing plants announced with state land allocations

Union Coal and Mines Minister G. Kishan Reddy confirmed that four critical mineral processing plants will be established in Odisha, Gujarat, Telangana and Maharashtra. State governments have already allocated sites, with dedicated action plans underway to support the projects. The facilities are intended to strengthen domestic refining capacity for minerals vital to electronics, EVs, renewable energy and defence manufacturing.

From auctions to alliances: building the supply chain

For the first time since Independence, India has auctioned a large number of critical mineral blocks, marking a major step toward building a domestic supply chain. The government has signed multiple MoUs, including a landmark framework with the United States, to secure supply and technology partnerships. Overseas acquisitions, such as mineral blocks in Argentina, are also part of the strategy to ensure long-term resource security.

Key areas of US-India critical minerals cooperation
Joint investment in processing infrastructure could pair US technology with Indian feedstock and industrial scale.
Collaboration may include recovering rare earths and other critical minerals from coal ash and mining waste.
Regulatory alignment and shared certification frameworks aim to ease cross-border industrial operations.
Workforce development initiatives could train engineers and geologists for specialized mineral processing roles.

Parliament and global partners drive India’s critical mineral strategy forward

India is engaging with over 30 countries to create an alternative supply chain to China for critical minerals, alongside Quad commitments to mobilise $20 billion for secure supply chains. Domestically, the Parliamentary Standing Committee is reviewing Khanij Bidesh India Limited’s efforts to source lithium and cobalt from abroad. These initiatives align with India’s goal of becoming a trusted partner in mineral alliances while addressing pricing and competitiveness challenges

What’s next for India’s critical mineral mission?

Analysts highlight that the India-US Critical Minerals Cooperation Framework could deliver results if backed by joint investment, technology transfer, and regulatory coordination. Potential next steps include co-developing processing infrastructure, recovering minerals from mining waste, and building specialised workforce capacity. Success will hinge on translating diplomatic intent into operational refineries, research ecosystems and skilled manpower over the next decade

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