India to build a six-month strategic stockpile of lithium, cobalt and rare earths as demand rises

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India is planning to build a strategic reserve of critical minerals to meet six months of local demand. The step addresses rising fears of supply cuts and wild price swings.

Ministries of mines and heavy industries plan to stockpile critical minerals. These include lithium, cobalt, nickel, copper, and rare earths, essential for electric vehicles, renewable energy storage, and electronics, areas where India relies on imports.

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The reserve would stock minerals sourced from within India and imported ones. Discussions are ongoing with the industry players to figure out the best structure and management approach for it. It aims to cut risks from global supply shocks and keep essential raw materials flowing steadily.

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Concerns have increased due to the dominant role of China in rare earth production and processing. Export restrictions on rare-earth magnets in recent years have shown how quickly global supply chains can be disrupted. This has pushed India to look at both stockpiling and improving its own processing capacity.

Similar systems already exist in other countries. The United States maintains the National Defence Stockpile, while China and South Korea also keep reserves of key minerals.

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India needs more of these minerals as EVs grow and energy storage spreads. Local production strategy will take years to build. But a reserve now helps avoid supply problems and cuts import reliance.