In a move to fortify India’s position in the critical minerals space, Coal India Ltd (CIL) and IREL (India) Ltd have signed a non-binding memorandum of understanding (MoU). The collaboration aims to explore and develop critical minerals, including rare earth elements (REE) and mineral sands, which are vital for advancing clean energy technologies and strategic industries.
The partnership is poised to focus on the acquisition of assets, sourcing raw materials, and bolstering capabilities in mining, extraction, and refining. Both domestic and international markets will be explored to secure a stable supply chain for critical minerals, particularly those like lithium and cobalt, which play a significant role in battery production and renewable energy technologies.
The collaboration is part of India’s larger effort to reduce dependency on imports for critical minerals, a goal underscored by the government’s Critical Mineral Mission, announced during the Union Budget 2024-25. This mission is designed to expand domestic production, promote recycling, and encourage the acquisition of overseas assets to secure long-term supply chains.
As one of the few nations with the capability to produce rare earth elements, India is strategically positioning itself to meet the rising global demand for these materials. Rare earth elements, such as neodymium, dysprosium, and terbium, are essential for manufacturing electric vehicles, wind turbines, and various high-tech applications.
IREL, a government-owned enterprise under the Department of Atomic Energy, has been a key player in the production and processing of rare earth elements. With its expertise in mining, processing, and refining mineral sands, IREL is aiming for self-sufficiency in critical minerals. This collaboration with CIL is expected to strengthen India’s supply chain and enhance its technological capabilities.
The global race for critical minerals has intensified in recent years, with nations striving to secure these valuable resources. India’s proactive approach, through initiatives like the Critical Mineral Mission, reflects its determination to become a major player in this sector. By partnering with IREL, CIL is set to contribute significantly to this mission, creating a robust ecosystem for critical minerals in India.
Moreover, the collaboration aligns with India’s commitment to achieving its climate goals, as critical minerals are indispensable for the development of renewable energy infrastructure, energy storage systems, and electric mobility.
CIL and IREL’s efforts will not be limited to resource acquisition. The partnership also includes plans to build state-of-the-art facilities for mining, extraction, and refining, which will not only cater to domestic needs but also position India as an exporter of processed critical minerals.
The government’s focus on incentivizing recycling is another key component of the strategy. Recycling end-of-life products, such as batteries and electronic waste, is expected to supplement the supply of rare earth elements and reduce the environmental impact of mining.
This collaboration between CIL and IREL marks a significant step toward building a self-reliant and sustainable critical minerals ecosystem in India. By leveraging their respective strengths, the two companies aim to ensure a steady supply of rare earth elements and mineral sands, which are essential for technological advancement and energy transition.
As global competition for these resources continues to rise, India’s strategic initiatives in this domain are likely to not only reduce its dependency on imports but also establish it as a leading hub for critical minerals.