45,000 Crore Worth of Critical Minerals, Spanning 20 Blocks, Set for Auction

The Indian government has launched the first phase of the Critical and Strategic Minerals Auction in an effort to address potential supply chain vulnerabilities for materials like lithium, cobalt, and titanium. The auction includes a total of 20 blocks with an estimated combined value of Rs 45,000 crore. Union Minister of Mines, Pralhad Joshi, made the announcement and stated that composite licenses will be issued for 16 of the blocks, while mining licenses will be given for the remaining four. Exploration will be allowed under the composite licenses.

The selection of the bidder will be based on the highest percentage of royalty rates quoted by them. The sale of tender documents will begin immediately, and prospective bidders are encouraged to apply. The auction is of great importance as these minerals are crucial for the country’s economic development and national security.

Lithium, in particular, plays a vital role in lithium-ion batteries, which are essential for mobile communications and electric vehicles. These batteries are considered the future of transportation, and they also enable the storage of electricity produced from solar power for use when the sun is not shining. India has committed to achieving 50% of its cumulative electric power installed capacity from non-fossil sources by 2030, and minerals like lithium will play a key role in achieving this goal.

Cobalt, another critical mineral, is also used in storage applications, while titanium finds wide usage in the defense industry. Additionally, these minerals are important for industries such as agriculture and pharmaceutical production.

Minister Joshi revealed that a total of 100 blocks have been identified for auction, with 20 being offered in the first phase. The auction for the remaining blocks will take place in the future.

Overall, the launch of the Critical and Strategic Minerals Auction aims to secure the supply of essential minerals and support India’s economic growth and national security objectives.