Global supply chains are becoming increasingly fragile, strained by export restrictions, trade barriers, extreme weather events and geopolitical tensions. Against this backdrop, countries like China — armed with integrated capabilities across mining, refining, and processing — have gained a strategic advantage, driving technological advancement and expanding their geopolitical influence.
Other extreme events such as the Covid-19 pandemic exposed the vulnerabilities of global supply networks, underscoring the urgent need for strategic stockpiling as a critical tool to enhance national resilience. For resource constrained nations like India, maintaining a stable supply of critical minerals remains vital for safeguarding national security and supporting the clean energy transition.
India’s strategy must be multi-pronged: (a) establishing a global stockpiling alliance with clear mandates, (b) forging international partnerships that include long-term offtake agreements, and (c) strengthening domestic exploration, refining, and recycling capabilities.
Time and again, countries worldwide have stockpiled emergency reserves for strategic, defence, and economic purposes. Recent export restrictions by China on minerals such as gallium, germanium, and rare earth elements have further exposed supply chain fragilities, particularly for import-dependent nations like India.
Global best practices
The US established one of the earliest and most institutionalised stockpiling programmes, the National Defense Stockpile, to ensure access to critical materials like cobalt, titanium, and rare earths during times of crisis.
The US also supports stockpiling of critical metals from unconventional sources, such as deep-sea polymetallic nodules, to reduce reliance on China, though not without ecological concerns.
In contrast, Australia has taken a more market stabilising approach, recently announcing a $1.2 billion Critical Minerals Stockpile Plan that funds the expansion of its Critical Minerals Facility. The government acts as a guaranteed buyer to support domestic mining and reduce investor risk.
The EU’s Critical Raw Materials Act encourages members to build national stockpiles while exploring joint procurement frameworks to improve resilience. France and Germany are also exploring country-specific reserves. However, the UK emphasises supply chain flexibility, prioritising recycling and diversification while remaining open to collaborative stockpiling with international partners.
In Asia, Japan, through its oil, gas, and metals national corporation (JOGMEC) maintains strategic reserves of cobalt, tungsten, and nickel sufficient for 60 to 180 days. Similarly, South Korea’s Korea Resources Corporation (KORES) targets reducing import dependency on critical minerals to 50 per cent by 2030 by expanding its stockpile capacity for rare metals from 54 to 100 days by 2031. On the other hand, China relies on state-controlled reserves and export restrictions, most notably on gallium and germanium, for geopolitical leverage.
India, too, has acknowledged this need through the launch of the National Critical Minerals Mission (NCMM), which aims to secure critical mineral supply chains via domestic exploration and international partnerships. The mission recognises critical mineral access as a strategic imperative but lacks detailed frameworks to implement national-scale stockpiling.
Herein lies an opportunity for countries to collaborate on building storage facilities, crafting procurement strategies and signing long-term offtake agreements to establish a stable pool of minerals.
Leveraging opportunities
As India moves towards its net zero target of 2070, the demand for critical minerals, including lithium, nickel, cobalt, copper and rare earth elements, is expected to grow substantially. However, India’s limited domestic resources — except silicon — and mining capacity make strategic stockpiling essential for uninterrupted access to these minerals while supporting long-term economic growth. To develop a robust stockpiling strategy, India must:
Establish a National Stockpiling Alliance (NSA): NSA can develop flexible procurement mechanisms, balance long-term contracts with global partners and invest in storage and inventory management infrastructure. The Ministry of Mines should task the newly launched National Critical Minerals Outreach Forum to incorporate a comprehensive stockpiling plan into India’s mineral security strategy. Moreover, a national stockpile will boost recycler confidence by ensuring reliable offtake, encouraging capacity investment. This, in turn, can position India as a hub for processing imported black mass from other countries, enhancing the strategic value and volume of its reserves through domestic refining and recycling.
Pursue strategic partnerships with nations like the US and Japan, along with other key nations like Australia to explore joint ventures, shared reserves, and diplomatic agreements that enhance mineral security. The Indian government should negotiate access to allied reserves or develop shared stockpiles through multilateral platforms such as the Quadrilateral Security Dialogue, the Minerals Security Partnership, and the Indo-Pacific Economic Framework for Prosperity.
Bolster domestic exploration, refining, and recycling capacity to ensure that stockpiling complements rather than substitutes long-term self-reliance.
By drawing from diverse international models and tailoring them to its unique needs, India can build a robust and adaptive critical mineral stockpiling strategy that supports its economic goals, strengthens national security, and enhances its global standing.
Saloni is Energy Specialist, Institute for Energy Economics and Financial Analysis , and Akanksha is Fellow, Chair on India & Emerging Asia Economics, Center for Strategic and International Studies