India is in discussions with Chile and Peru to secure critical mineral supplies as part of ongoing free trade agreement negotiations, a trade ministry source said Tuesday.
Reliant on imports to meet demand, India already planned to include a chapter on copper in the trade talks with the two South American countries to secure a fixed quantity of copper concentrate, according to a government document earlier this month.
India meets more than 90% of its copper concentrate needs through imports, and its dependency is expected to rise to 97% by 2047, the document said.
India is also working with trading partners to reduce dependence on China for critical minerals, the trade ministry source said.
China, which produces around 90% of the world’s rare earth magnets, in April put restrictions on their export as part of its response to U.S. tariffs.
India, which has the world’s third-largest car market and the fifth-largest reserves of rare earths, is working on a new programme to incentivise local magnet production, Reuters reported last month.
India Turbocharges Minerals Mission
India is rapidly emerging as a key player in the global race for critical minerals, intensifying its efforts to secure essential resources like lithium, cobalt, nickel, and rare earths.
These materials are vital for electric vehicles (EVs), clean energy, electronics, and national security, and India’s strategy reflects both urgency and ambition.
Facing a heavy reliance on imports—100% for lithium and over 60% for copper and graphite—India has launched a multipronged mission.
The government’s National Critical Minerals Mission (NCMM), announced in 2025, aims to reduce this dependency by investing over ₹34,000 crore through a mix of public and private capital. It focuses on exploration, processing, recycling, and international sourcing.
Domestically, India is auctioning over 1,000 critical mineral blocks, amending its mining laws to attract private players, and setting up specialised processing parks.
The goal is to unlock untapped geological reserves and build a domestic supply chain capable of supporting its green energy and industrial goals.
Internationally, India is aggressively pursuing partnerships. It has signed agreements with countries like Australia, Argentina, and Namibia, and is currently in talks with Chile and Peru for copper and lithium sourcing.
The state-owned joint venture KABIL (Khanij Bidesh India Ltd) has been leading efforts to acquire overseas mining assets and secure long-term supplies.
Additionally, India is ramping up recycling to reduce pressure on primary resources. It plans to recover up to 90% of battery materials by 2027 and mandate the use of recycled content in non-ferrous products.
(With inputs from Reuters)
