India will auction as many as 100 critical material blocks over the next four months, as it looks to develop domestic supplies of critical materials.

According to Mines Secretary Vivek Bharadwaj, the blocks are for materials including lithium, cobalt, rare earths, and platinum. The tender seeking bids is expected to be out by the end of 2023 and auctions may start in Q1 2024.

The news is the latest related to India’s plans to develop its critical materials infrastructure. 

In June, India entered into the US-led Mineral Security Partnership (MSP), a transnational association whose members seek to secure a stable supply of raw materials for their economies. Then, in July, India released its first critical minerals list, identifying 30 materials that are key to its economic growth and technological development. Its Ministry of Mines will be revisiting the critical mineral list periodically, while there are plans to bring out a policy framework for the exploration, processing, use and recycling of critical minerals.

India is a key producer of several critical materials including bauxite, chromium, graphite, iron ore, lead, manganese, REEs, and silicon. However, it is heavily dependent on imports for a much broader range of materials. 

In order to incentivize global and local miners to participate in the auction process, India is reportedly planning to reimburse half the cost of exploration, while companies may take at least three years to bring the mines into operation. In July, India changed its mining rules by allowing private prospectors to search for the materials.