Grant Thornton Bharat Unveils Roadmap to Strengthen India's Critical Minerals Value Chain

In view of building a critical minerals ecosystem in India, Grant Thornton Bharat has outlined a roadmap to strengthen India's end-to-end critical minerals value chain through targeted policy reforms, strategic investments and global partnerships in line with the vision of Viksit Bharat 2047.

While India has made significant progress through policy initiatives such as the National Critical Mineral Mission (NCMM), the next phase of growth will depend on addressing structural gaps across the critical minerals value chain; from exploration and mining to refining, recycling, financing and strategic overseas partnerships. The report examines these challenges and presents a comprehensive framework to build a resilient ecosystem that supports India's long-term energy transition and industrial competitiveness.

The report highlights that India's target of achieving 500 GW of non-fossil fuel capacity by 2030, alongside the rapid expansion of its electric mobility ecosystem, will significantly increase demand for critical minerals such as lithium, cobalt, nickel, graphite, copper and rare earth elements. Demand for EV batteries alone is projected to reach 110–130 GWh by 2030, while the requirement for key critical minerals is expected to grow four to ten times as the country advances towards its Net Zero 2070 goal.

To build a resilient domestic critical minerals ecosystem, the report outlines a three-phase roadmap extending to 2047. The first phase (2026–2031) focuses on establishing the foundation through measures such as Extended Producer Responsibility (EPR), Circular Mineral Processing Zones (CMPZs), battery traceability systems and recycling incentives. The second phase (2031–2036) aims to industrialise the ecosystem by scaling recycling infrastructure, strengthening traceability systems and expanding green financing mechanisms. The final phase (2036–2047) envisions achieving strategic self-reliance by reducing import dependence, strengthening domestic refining and recycling capabilities and creating a USD 10–15 billion annual recycling economy.

The report also recommends reorienting India's critical mineral policy framework from revenue maximisation towards long-term resource security. Key policy measures include enabling exploration-led mineral allocation, adopting mineral-specific strategies, mandating domestic value addition, strengthening refining and processing capabilities, accelerating regulatory approvals, rationalising the fiscal framework and promoting downstream manufacturing.

To enhance overseas resource security, the report proposes establishing a dedicated sovereign critical minerals fund, expanding public-private partnerships with global mining companies, strengthening government-to-government collaborations, providing concessional financing and sovereign guarantees, and investing in overseas mining, refining and processing assets to secure long-term mineral supplies.

Recognising the capital-intensive nature of critical mineral projects, particularly in refining, separation and recycling, the report advocates a multi-layered financing framework. It recommends combining government support for exploration with sovereign green bonds, fiscal incentives, Foreign Direct Investment (FDI), venture capital, commercial bank financing backed by guarantees and multilateral funding. While the National Critical Minerals Mission (NCMM) has an outlay of INR 34,300 crore, the report notes that more targeted financing mechanisms will be essential to support high-risk segments across the critical minerals value chain.

Building a resilient critical minerals ecosystem will require India to move beyond mining and invest across the entire value chain; from exploration and refining to recycling, financing and strategic overseas partnerships to strengthen long-term resource security and support the country's clean energy and industrial ambitions.