India set to auction mineral blocks for green energy transition

India is gearing up to launch the auction process for roughly 100 critical mineral blocks within the next four months, a vital step in ensuring a steady supply of raw materials crucial for the nation's green energy transition. These mineral blocks encompass resources such as nickel, lithium, cobalt, platinum, rare earths, and more.Mines Secretary Vivek Bharadwaj shared in an interview that the legal framework is already in place, and the specific mineral blocks have been identified for auction. It is anticipated that the tender for bids will be released by December, with auctions commencing around three months thereafter.India's urgent focus on securing critical minerals stems from its ambitious plans to become a prominent hub for battery and electric vehicle manufacturing while also striving to achieve net-zero emissions. Presently, India does not domestically mine key materials like lithium, cobalt, and nickel, making the auction process a critical step toward mineral self-sufficiency.To incentivise both global and local mining companies to participate in this endeavour, the government plans to reimburse half of the exploration costs. Bharadwaj explained that it may take companies at least three years to bring these mining projects into operation.India recently amended its mining regulations to encourage exploration of essential minerals like lithium, permitting private miners to engage in the search for these materials. These regulatory changes are pivotal for auctioning lithium blocks recently identified in Jammu and Kashmir and Karnataka.Several state-run companies have been actively seeking such mineral assets worldwide, while energy giants like Coal India and NTPC are devising strategies for mineral mining. Additionally, Khanij Bidesh India, a joint venture involving three government-run firms, has been established to acquire critical mineral assets overseas, with a primary focus on Australia and South America.