National Critical Mineral Stockpile (NCMS) Initiative

The government is preparing to launch the National Critical Mineral Stockpile (NCMS), a program designed to ensure the availability of rare earth elements within India.

Background and Motivation

• China's decision to impose export curbs on rare earth magnets has disrupted global supply chains.
• Rare earth elements are essential for various green technologies such as electric vehicles and wind turbines.

Program Details

• Aim to create a two-month stockpile of rare earth elements.
• Initial focus on rare earth elements, with plans to expand to other critical minerals.
• Encouragement of private sector participation in the program.

Rare Earth Elements

• Comprise a group of 17 elements with similar chemical traits.
• Valued for unique magnetic and electrical properties, particularly in rare earth magnets.

Government Initiatives

• A ₹7,300 crore incentive scheme approved to promote rare earth magnet production, targeting 6,000 tonnes over five years.
• Under the National Critical Minerals Mission, ₹500 crore allocated to safeguard against supply disruptions.

Challenges and Industry Insights

• India’s technological capacity to extract domestic rare earths is limited, with most supplies imported.
• India's estimated reserves include 7.23 million tonnes of rare earth oxide within 13.15 million tonnes of monazite.

Strategic Auctions

• Five tranches of auctions conducted, with 55 critical mineral blocks offered and 34 successfully awarded.
• The sixth tranche of auctions recently launched for additional blocks.