India To Set Up 4 Critical Mineral Processing Plants Across; Mining, EV And Rare Earth Stocks In Focus

India is accelerating its push to secure critical mineral supply chains with plans to establish four critical mineral value processing plants across Odisha, Gujarat, Telangana and Maharashtra, a move expected to strengthen domestic capabilities in minerals essential for electric vehicles, semiconductors, clean energy and defence manufacturing.

Union Coal and Mines Minister G. Kishan Reddy said the plants are part of the government’s broader National Critical Mineral Mission (NCMM), under which dedicated critical mineral mining blocks are being identified and auctioned. The minister added that the respective state governments have already allotted land for the proposed facilities and are preparing implementation roadmaps.

₹500 Crore Allocated For Strategic Mineral Value Addition

The Centre has earmarked ₹500 crore under the mission to support the development of these processing parks. The facilities are expected to focus on value addition and refining of strategic minerals such as lithium, cobalt, nickel, graphite and rare earth elements, which are crucial inputs for battery manufacturing, permanent magnets and advanced electronics.

The announcement comes as India attempts to reduce its import dependence on processed critical minerals, especially from China, which currently dominates global refining capacity. The government has been increasing auctions of critical mineral blocks while simultaneously signing overseas mineral sourcing agreements to secure raw material supplies.

Listed Stocks Likely To Be Impacted

The development is expected to keep several listed companies in focus:

• NMDC Limited – India’s largest iron ore producer and an emerging participant in strategic mineral exploration.

• MOIL Limited – could benefit from the broader domestic mineral processing ecosystem.

• Hindustan Zinc Limited – may gain from downstream mineral processing and strategic metals demand.

• Vedanta Limited – exposure to zinc, aluminium and critical minerals makes it relevant to the value-chain expansion.

• Tata Chemicals Limited – remains on watch due to lithium-ion battery material ambitions.

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Market participants are also expected to track battery makers, EV manufacturers and magnet-linked industrial companies as India builds a domestic ecosystem around critical mineral processing.

Sources:

NDTV Profit

Economic Times