India Launches 20-Block Critical Mineral Auction to Reduce China Supply Chain Dependence

India has initiated the first tranche of auctions for critical and strategic minerals covering 20 blocks of lithium, rare earth elements, nickel, copper, chromium and other materials, as the country moves to reduce dependence on China and secure the raw material base for its domestic renewable energy supply chain. India imported 50,000 tonnes of amorphous graphite from China in the five years to 2023, alongside significant volumes of cobalt oxide and nickel compounds.

The mineral block auctions follow amendments to India's Mines and Minerals Development and Regulation Act to allow private sector participation, and the Ministry of Mines' publication of a critical minerals list. The 20 blocks covering lithium, REE, nickel, copper, chromium, phosphorite, potash, glauconite, graphite, manganese and molybdenum will be auctioned online in two stages using a clear ascending bid process. India's participation in the Minerals Security Partnership, the EU Critical Mineral Club and G20 energy security working groups reflects the country's strategy of combining domestic production with international partnerships.

The supply chain context underscores the urgency. China accounts for 70% of global rare earth mining and 85% of processing capacity. It is also responsible for 68% of global nickel refining, 40% of copper, 59% of lithium and 73% of cobalt refining. Australia produces 55% of global lithium supply while South Africa mines 72% of global platinum. This concentration creates price volatility risk, geopolitical leverage and potential monopolistic control over materials that are foundational to solar panels, wind turbines, EV batteries and grid storage systems. India's commitment to 500 GW of non-fossil fuel capacity by 2030 makes access to these minerals a strategic imperative.

COP28 is identified as a critical forum for advancing international technology transfer in mining, extraction and processing, and for forging agreements on responsible extraction standards and recycling frameworks. The US Infrastructure Investment and Jobs Act allocated US$6 billion for EV supply chain materials and battery recycling, while the EU mandates raw material tracking and recycled content requirements under its battery regulation. India is developing analogous recycling policies. IEEFA analysis positions critical mineral supply chain resilience as inseparable from India's renewable energy transition goals, with the 2023-2024 auction process as a foundational step in reducing import vulnerability.

Key figure — 50,000 tonnes — amorphous graphite imported by India from China between 2017 and 2023