Hindustan Copper and Oil India to Expand Domestic Mineral Production

In a strategic push to bolster India's self-reliance in critical and strategic minerals, Oil India Ltd. and Hindustan Copper Ltd. have signed a Memorandum of Understanding (MoU) on September 19, 2025, to jointly explore and develop resources such as copper and associated minerals. This collaboration marks a significant milestone in India’s quest to secure its supply chain for minerals vital to economic development and national security, including lithium, copper, and cobalt, which are essential for electric vehicles and green energy infrastructure.

Oil India, traditionally a crude oil and natural gas explorer, has expanded its focus to include critical minerals, while Hindustan Copper concentrates on mining, beneficiation, and the sale of copper concentrate. The partnership aims to reduce India’s heavy dependence on imports, particularly from China, which dominates over 90% of the global rare earth supply chain. Beijing’s recent tightening of export controls on rare earth magnets—key components in electric vehicles, wind turbines, and electronics—has underscored the urgency for India to diversify its sourcing and enhance domestic production capabilities.

This initiative aligns with India’s broader National Critical Mineral Mission, which includes a recently approved Rs 1,500-crore incentive scheme to foster critical and rare earth mineral development over six years. The scheme is expected to create 270 kilo tonnes of annual recycling capacity, yielding approximately 40 kilo tonnes of critical mineral production, attracting Rs 8,000 crore in investments, and generating nearly 70,000 direct and indirect jobs.

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India has also pursued international collaborations to secure its mineral supply chain, signing MoUs with Australia and the European Union to diversify sourcing and support domestic processing. Additionally, in June 2025, Hindustan Copper partnered with Rites Ltd. to develop a sustainable supply chain for metals and minerals, including participation in mineral block auctions and the establishment of mining infrastructure.

The Oil India-Hindustan Copper partnership, combined with these strategic efforts, positions India to strengthen its economic and energy security while reducing reliance on foreign supplies, particularly from China, in the race for critical minerals essential to the global green energy transition.

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