India is rapidly expanding its push for critical minerals such as lithium and rare earths through domestic exploration and overseas partnerships, aiming to reduce dependence on China-controlled supply chains.
FILE PHOTO: Blocks with symbols and atomic numbers of Rare Earth Elements (REE), in this illustration taken January 21, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
As the global battle for critical minerals intensifies, India is steadily positioning itself as one of the few countries capable of challenging China’s overwhelming dominance in the sector. The shift is now beginning to attract close attention in Beijing, particularly as New Delhi expands efforts to secure both domestic reserves and overseas mineral assets critical for the technologies of the future.
From lithium and cobalt to rare earth elements used in electric vehicles, semiconductors, defence systems and renewable energy infrastructure, India is increasingly treating critical minerals not just as an industrial requirement but as a strategic national security priority.
According to senior government sources quoted by CNN-News18, Chinese concerns are growing because India’s approach has moved beyond basic resource acquisition and evolved into a long-term geopolitical strategy designed to reduce dependence on Beijing-controlled supply chains.
India’s critical minerals push gathers pace
At the centre of India’s strategy is the National Critical Minerals Mission launched in 2025.
The programme involves major investments aimed at accelerating exploration, extraction, refining and processing capabilities inside India while also strengthening supply-chain resilience.
Government sources told CNN-News18 that the mission reflects a broader understanding within New Delhi that future technological and economic competition will depend heavily on access to strategic minerals.
India possesses reserves of several important rare earth elements, and recent lithium discoveries have added momentum to hopes of building greater self-reliance in battery manufacturing and clean-energy supply chains.
However, Indian policymakers also recognise that domestic reserves alone will not be sufficient to compete globally, particularly against China’s decades-long head start.
India expands overseas mineral strategy
As a result, India has simultaneously intensified efforts to secure overseas mineral assets.
Through KABIL and several state-run public sector companies, India is actively pursuing partnerships and mining opportunities across Africa, Australia and Latin America.
According to sources cited by CNN-News18, the overseas strategy is designed to ensure long-term access to minerals that are crucial for India’s manufacturing ambitions, especially in electric mobility, electronics and defence production.
The push also aligns with India’s broader effort to position itself as a trusted alternative supply-chain partner at a time when many countries are seeking to reduce excessive dependence on China.
Why China’s dominance matters
China currently dominates almost every stage of the critical minerals ecosystem.
Industry estimates suggest Beijing controls roughly 60 to 70 per cent of global rare earth mining capacity and nearly 85 to 90 per cent of refining and magnet production.
Its influence extends far beyond extraction alone.
China also controls major parts of the processing infrastructure needed to convert raw minerals into usable industrial materials for batteries, electric motors, semiconductors and defence technologies.
This refining dominance is especially important because many countries possess mineral reserves but still rely heavily on Chinese processing facilities.
Beijing also maintains strict export controls through licensing systems overseen by the Ministry of Commerce of China.
Officially, the restrictions are justified on national security grounds and to monitor end users, especially in military-linked sectors.
However, analysts have long argued that China’s dominance also gives it significant geopolitical leverage during trade disputes and strategic competition.
India’s partnerships worry Beijing
One reason India’s rise is drawing attention in China is its growing alignment with countries trying to diversify away from Chinese-controlled supply chains.
India has deepened cooperation with the United States, Japan and Australia, particularly through frameworks linked to the Quadrilateral Security Dialogue.
These partnerships increasingly focus on battery materials, rare earth processing, refining infrastructure and magnet manufacturing.
Sources quoted by CNN-News18 indicated that India’s efforts to develop domestic processing parks and refining facilities are viewed as particularly significant because they directly target the area where China remains strongest.
For Beijing, the immediate concern is not that India will suddenly replace China as the world’s dominant supplier.
Instead, the larger fear appears to be the gradual emergence of multiple alternative supply chains that collectively reduce dependence on Chinese networks.
Such diversification could eventually weaken China’s strategic leverage over one of the world’s most important industrial sectors.
A long-term strategic competition
Despite India’s growing ambitions, China still maintains a major advantage in infrastructure, technology, refining expertise and industrial scale.
India also remains a net importer of many critical minerals today.
However, officials quoted by CNN-News18 suggested that the direction of India’s policy is becoming increasingly clear.
The country is not only trying to secure resources for itself, but is also seeking to position itself as part of a broader global supply-chain realignment aimed at reducing concentration risks in strategically important industries.
As the transition toward electric mobility, renewable energy and advanced manufacturing accelerates globally, critical minerals are increasingly becoming a new arena of geopolitical competition.
And in that competition, India is now positioning itself not merely as a buyer, but as an emerging challenger to China’s long-standing dominance.
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