India is considering establishing a strategic reserve of critical minerals and metals to ensure uninterrupted supplies for defense manufacturing, a senior government official said on Saturday. The move comes as nations worldwide accelerate efforts to secure their domestic supply chains amid rising geopolitical risks.
Rajesh Kumar Singh, a top Ministry of Defence official, said the reserve would help the country “tide over immediate requirement” during emergencies. He made the remarks at a media event organized by Business Standard in New Delhi. This is the first time India has publicly disclosed plans to set up such a reserve.
Critical minerals such as rare earths are indispensable for producing key military hardware, including missiles, aircraft, radars, and warships. Disruptions in supply could significantly impair defense readiness.
The announcement follows recent turmoil in global rare earth markets. China, which controls about 90% of global output of rare earth magnets, introduced export restrictions in April, leading to supply shocks for industries ranging from defense to electric vehicles and renewable energy. Although Beijing has since eased the curbs, the episode underscored vulnerabilities and spurred countries, including India, to seek alternatives.
To bolster self-reliance, India has already begun taking steps. The government recently approved a ₹15 billion ($170 million) incentive program to promote recycling of critical minerals from batteries and e-waste, according to Bloomberg News. Earlier this month, New Delhi also classified rare earth mines as “strategic projects,” a move expected to streamline environmental clearances and accelerate development of new mines.
“India does have reasonable stocks of critical minerals by all accounts and we should be able to better utilize in the future,” Singh noted.
The strategic reserve, once established, is expected to complement these measures, enhancing India’s ability to withstand future supply disruptions and ensuring defense preparedness remains uncompromised.
