Critical Minerals & Battery Manufacturing — PLI, KABIL & Net Zero 2070

CURRENT AFFAIRS | MARCH 2026

What are Critical Minerals?

• Critical minerals = minerals essential for modern technology and clean energy transition but with high supply risk
• India’s list (2023): 30 minerals including lithium, cobalt, nickel, graphite, rare earths, vanadium, tungsten
• Applications: batteries (EVs, grid storage), semiconductors, defence, renewable energy, electronics
• Supply concentration: China controls 60%+ of processing for most critical minerals

PLI-ACC Scheme — Battery Manufacturing

• Aims to build domestic battery manufacturing ecosystem
• Covers: lithium-ion, sodium-ion, solid-state batteries
• Incentive: Rs 2,000-2,500 per kWh for qualifying manufacturers
• Expected to reduce import dependence and create 45,000+ jobs

KABIL to NCMM — Institutional Evolution

• KABIL (Khanij Bidesh India Ltd) — set up in 2019 for overseas mineral acquisition
• Joint venture of NALCO, HCL, MECL
• Restructured into NCMM (National Critical Minerals Mission) — broader mandate
• NCMM covers: exploration, mining, recycling, processing, strategic reserves
• India signed mineral pacts with Australia, Argentina, Chile, US, Canada

Pax Silica — The Geopolitics of Minerals

• China’s dominance: 60% lithium processing, 70% cobalt refining, 90% rare earth processing
• Western response: US Inflation Reduction Act, EU Critical Raw Materials Act, Mineral Security Partnership
• India’s challenge: building supply chains outside Chinese control
• Resource nationalism: Indonesia banned nickel ore exports; Chile nationalising lithium

Hard Carbon from Crop Stubble

• Hard carbon = key anode material for sodium-ion batteries
• Indian researchers developed process to make hard carbon from rice/wheat stubble
• Dual benefit: solves stubble burning pollution + creates battery material
• Aligns with circular economy and waste-to-value approach
• Could make India a hard carbon exporter

Net Zero 2070 — Mineral Requirements

• India committed to Net Zero by 2070 at COP26 Glasgow
• Clean energy transition requires massive mineral inputs
• An EV needs 6x more minerals than a conventional car
• Offshore wind turbine needs 13 tonnes of rare earths
• Without secure mineral supply, Net Zero is impossible

Key Terms for CLAT

• PLI-ACC — Production Linked Incentive for Advanced Chemistry Cell
• NCMM — National Critical Minerals Mission (successor to KABIL)
• Pax Silica — Geopolitical era defined by mineral control
• Hard carbon — Anode material for Na-ion batteries
• Resource nationalism — Countries restricting mineral exports

Source: UPSC Essentials, The Indian Express — March 2026

Practice Quiz

Test your understanding with these 10 MCQs:

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