Exploring a Strategic Reserve
On September 20, 2025, reports from New Delhi indicated that the Indian government is considering the creation of a strategic reserve for rare earths and critical minerals, with a special focus on defense and high-tech applications. The proposal is part of India’s broader national security strategy, designed to shield the country from supply disruptions in materials essential for advanced weapons systems, aerospace technologies, and renewable energy infrastructure.
Defense and Security Imperatives
Officials highlighted that India’s defense-industrial base depends increasingly on minerals such as rare earths, lithium, and cobalt, most of which are imported from politically sensitive regions. Establishing a stockpile would ensure readiness in times of crisis and reduce exposure to sudden export restrictions, particularly those from China, which dominates the rare-earths market. The reserve would be modeled on India’s strategic petroleum reserves, combining physical stockpiles with long-term procurement agreements.
Implications for Policy and Industry
If implemented, the initiative could reshape India’s critical-minerals policy by linking defense security with industrial development. It would also open opportunities for new partnerships with producer nations in Africa, Latin America, and Australia, as India seeks to diversify sources and invest in overseas mining ventures. For global markets, India’s move signals the rising trend of nations treating critical minerals not just as industrial inputs but as strategic assets—potentially adding another layer of competition to already tight supply chains.