Andhra’s Rs 150 cr exploration MoU for lithium, gallium as Centre pushes critical mineral self-reliance
An MoU worth ₹150 crore was signed between CSIR-National Geophysical Research Institute (NGRI) and the Andhra Pradesh Department of Mines and Geology for exploration of lithium and gallium deposits in the Vempalle region of the Kadapa (Cuddapah) Basin
The project is to be funded through the National Mineral Exploration Trust (NMET)
Preliminary studies by NGRI in the Thummalapalle area had earlier indicated lithium concentrations of up to 1,000 parts per million (ppm) and gallium up to 250 ppm
The state government notified a dedicated critical minerals policy in 2025 covering 30 critical minerals and 24 minor minerals
The exploration push is positioned as part of the Centre's broader effort to reduce import dependence on critical minerals, particularly from China
National Critical Mineral Mission (NCMM)
The National Critical Mineral Mission was approved by the Union Cabinet in January 2025 to build a resilient domestic value chain — from exploration to mining, beneficiation, processing and recycling — for minerals essential to clean energy, electronics and defence technologies. It responds to India's near-total import dependence for several critical minerals, most of which are sourced from China.
Key Details
- Total outlay: ₹34,300 crore over seven years (2024-25 to 2030-31) — ₹16,300 crore as central government expenditure plus an expected ₹18,000 crore investment from PSUs and other entities
- The Geological Survey of India (GSI) has been tasked with 1,200 exploration projects for critical minerals during this period
- A Ministry of Mines-constituted committee (2022) identified a list of 30 critical minerals for India, of which 24 are listed in Part D of the First Schedule of the Mines and Minerals (Development and Regulation) Act, 1957
- The mission also targets domestic production capacity for at least 15 critical minerals, including lithium, graphite and rare earth elements
The Andhra Pradesh MoU is an NMET-funded exploration project executed as part of this national push, targeting two minerals — lithium and gallium — explicitly named in India's critical minerals list.
MMDR Amendment Act, 2023 — Opening Critical Minerals to Auction
The Mines and Minerals (Development and Regulation) Amendment Act, 2023 restructured how critical and strategic minerals are explored and mined in India. It empowered the Central Government to conduct auctions exclusively for critical mineral concessions listed in Part D of the First Schedule, with auction revenue accruing to the state government concerned.
Key Details
- The Act removed six minerals — lithium, beryllium, niobium, titanium, tantalum and zirconium — from the "atomic minerals" category, where exploration/mining was earlier restricted to state agencies, opening them to private participation
- It introduced a new "Exploration Licence," granted through auction, allowing private players to undertake reconnaissance and prospecting for minerals listed in the Act's Seventh Schedule
- As of the latest official data, over a dozen critical mineral blocks (covering lithium, rare earth elements, graphite, nickel and other minerals) have been auctioned under this framework
Lithium's removal from the restrictive "atomic mineral" category by the 2023 amendment is what made state-level exploration MoUs like the Andhra Pradesh-NGRI agreement possible; the Kadapa Basin project is a direct downstream effect of this legal change.
Gallium and India's Strategic Mineral Vulnerability
Gallium is a byproduct metal (mainly recovered from bauxite/zinc processing) used in compound semiconductors (gallium arsenide, gallium nitride), solar photovoltaic cells, and 5G/LED technologies. It is classified as critical because global refining capacity is extremely concentrated.
Key Details
- China accounts for roughly 98–99% of global primary gallium production
- In July 2023, China imposed export licensing controls on gallium and germanium, citing national security; the controls took effect from August 2023 and were widely read as leverage in the broader chip/technology trade dispute
- India currently has negligible domestic gallium production, making the Kadapa Basin find significant if confirmed at scale
- Gallium is listed among the 24 minerals in Part D of the MMDR Act's First Schedule
The exploration MoU directly targets a mineral where India is almost entirely import-dependent on a single, geopolitically sensitive supplier, aligning with the Centre's stated aim of reducing exposure to Chinese mineral export controls.
Cuddapah (Kadapa) Basin — Geological Significance
The Cuddapah Basin is one of India's major Meso- to Neoproterozoic sedimentary basins, located in Andhra Pradesh, known for its stratigraphic sequence of the Papaghni, Chitravati, and Nallamalai groups. It already hosts India's largest known uranium deposit by tonnage.
Key Details
- The Vempalle Formation within the basin hosts the Tummalapalle uranium deposit — over 1 lakh tonnes of uranium oxide reserves at low grade (~0.045% U3O8), making it the largest uranium deposit in India by tonnage
- The basin also yields diamonds (Wajra Karur), limestone, barytes, and asbestos
- Its unmetamorphosed to mildly metamorphosed carbonate-dominated sequences also carry associated critical minerals such as rare earth elements, vanadium, molybdenum, cobalt, nickel and phosphate as potential byproducts of uranium mining
The lithium-gallium exploration announced here builds on the same geological formation (Vempalle) already known for uranium mineralisation, illustrating how a single Proterozoic basin can be a multi-mineral target relevant to both the energy and critical minerals missions.
- MoU value: ₹150 crore, funded via the National Mineral Exploration Trust (NMET)
- Preliminary NGRI findings in Thummalapalle: lithium up to 1,000 ppm, gallium up to 250 ppm
- National Critical Mineral Mission outlay: ₹34,300 crore over FY2024-25 to FY2030-31 (₹16,300 crore government + ₹18,000 crore PSU/other investment), approved January 2025
- GSI exploration target under NCMM: 1,200 projects by 2030-31
- India's critical minerals list: 30 minerals identified (2022 committee); 24 listed in Part D, First Schedule, MMDR Act, 1957
- China's share of global primary gallium production: approximately 98-99%
- China's gallium/germanium export controls: effective August 1, 2023
- Andhra Pradesh's critical minerals policy (2025): covers 30 critical and 24 minor minerals
- Tummalapalle uranium deposit: over 1 lakh tonnes U3O8, average grade ~0.045%, largest in India