Indian Economic

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

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CURRENT AFFAIRS | MARCH 2026

CLAT Relevance
• PLI-ACC scheme: Rs 18,100 crore for battery manufacturing
• KABIL restructured into NCMM (National Critical Minerals Mission)
• Pax Silica concept — geopolitics of critical minerals
• Hard carbon from crop stubble — Indian innovation
• Net Zero 2070 target

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

PLI-ACC Key Facts
• PLI = Production Linked Incentive
• ACC = Advanced Chemistry Cell (advanced battery technology)
• Outlay: Rs 18,100 crore
• Target: 50 GWh domestic battery manufacturing capacity
• Selected companies: Reliance New Energy, Ola Electric, Rajesh Exports, Hyundai Global Motors
  • 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

CLAT Angle — International Relations
Pax Silica = emerging geopolitical order where control over silicon, lithium, cobalt, and rare earths defines global power — replacing oil as the strategic resource. Similar to how Pax Americana was built on oil dominance.
  • 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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Quick answers

PLI scheme for ACC batteries has an outlay of:
Rs 18,100 Cr. PLI scheme for Advanced Chemistry Cell (ACC) batteries has an outlay of Rs 18,100 crore.
KABIL has been restructured into:
NCMM. KABIL (Khanij Bidesh India Ltd) has been restructured into NCMM (National Critical Minerals Mission).
Indias Net Zero target year is:
2070. India has committed to achieving Net Zero emissions by 2070.
PLI stands for:
Production Linked Incentive. PLI = Production Linked Incentive scheme to boost domestic manufacturing.
Hard carbon for Na-ion batteries can be made from:
Crop stubble (agricultural waste). Hard carbon anodes for Na-ion batteries can be produced from crop stubble, turning agri-waste into value.
Pax Silica refers to:
Geopolitical era defined by control of silicon and critical minerals. Pax Silica refers to the emerging geopolitical era where control over silicon and critical minerals defines power.
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