This partnership aims to foster the development of critical minerals such as mineral sands and rare earth elements (REE). The two companies will join forces to acquire assets, source raw materials from domestic and international markets, and establish mining, extraction, and refining capabilities.

The collaboration is part of CIL’s strategy to reduce India’s dependence on imports of critical minerals, including lithium and cobalt.

CIL’s Chairman, P M Prasad, has previously stressed the need for securing these mineral assets to support India’s clean energy goals.

The Indian government’s Union Budget for 2024-25 announced the Critical Mineral Mission, which focuses on expanding domestic production, recycling, and incentivising asset acquisition.

India is among the few countries capable of producing rare earth elements, and IREL aims for self-sufficiency in mining, processing, and refining these essential minerals.

However, the development of critical minerals also raises environmental concerns due to the significant water usage and potential for air pollution during refining and processing.