Critical minerals in Southeast Asia and India

1. The critical mineral landscape in ASEAN and India

1.1. Critical minerals reserves and capacities in Southeast Asia

ASEAN combines rapid economic growth with abundant critical mineral resources making it strategically positioned to support the global energy transition. With an aggregate GDP of USD 3.8 trillion in 2023, the region is the world’s fifth-largest economy and the third in Asia (ASEANStats, n.d.[1]). At the same time, member states are committed to achieving carbon neutrality by 2050–2060 (UNFCCC, n.d.[2]). Meeting these goals requires scaling up clean technologies, many of which depend on critical minerals in which ASEAN holds globally significant shares.

Based on data from the United States Geological Survey (USGS), critical mineral mining production and reserves in ASEAN are globally significant and diverse (USGS, 2025[3]):

• Nickel: The region collectively holds 46% of global reserves, led by Indonesia (around 42%), followed by the Philippines. Indonesia and the Philippines are also the world’s first and second nickel largest producers, respectively, together accounting for 68% of global nickel production. This positions ASEAN as indispensable for global battery and electrolyser production.

• Bauxite: With around 23-24% of global reserves, concentrated in Viet Nam (20%) and Indonesia (3-4%), ASEAN is well-positioned to supply aluminium, a key input in transport and clean energy infrastructure.

• Rare Earth Elements (REEs): ASEAN accounts for significant shares of REE world reserves and production. Viet Nam holds about 4% of global reserves1, while Myanmar has become an important producer and exporter of heavy REEs such as dysprosium and terbium, critical for EV motors and wind turbines (Le Monde, 2025[4]).

• Cobalt: Around 6-7% of global reserves are found in the region, primarily in Indonesia and the Philippines, reinforcing ASEAN’s role in global battery supply chains.

• Graphite: Viet Nam holds around 3-4% of natural graphite world reserves, making ASEAN relevant for the supply of graphite anodes used in batteries.

• Tin: The region holds significant reserves and contributes about 20% of global production, with Indonesia, Myanmar, Viet Nam, Malaysia and Laos as key producers. Tin is indispensable for electronics, soldering and a wide range of industrial applications.

• Other critical minerals: ASEAN also produces minerals such as silicon and tantalum, which are less abundant but strategically important. These are used in semiconductors, solar photovoltaics, digital infrastructure and defence industries, and are listed as critical by governments including India, Japan and Australia.

Table 1. Critical minerals in ASEAN – Reserves, key players, and strategic relevance

Mineral	ASEAN Share of Global Reserves / Production	Key Players	Strategic Relevance
Nickel	46% of global reserves; 68% of global production	Indonesia, Philippines	Batteries, electrolyzers
Bauxite	23–24% of global reserves	Viet Nam, Indonesia	Aluminum for transport and clean energy infrastructure
Rare Earth Elements (REEs)	VN ~4% of global reserves; ASEAN significant overall	Viet Nam, Myanmar	Heavy REEs (dysprosium, terbium) for EV motors, wind turbines
Cobalt	6–7% of global reserves	Indonesia, Philippines	Batteries
Graphite	3–4% of global natural graphite reserves	Viet Nam	Graphite anodes for batteries
Tin	~20% of global production	Indonesia, Myanmar, Viet Nam, Malaysia, Laos	Electronics, soldering, industrial applications
Other critical minerals (e.g. Silicon, Tantalum)	Limited production	Malaysia, others	Semiconductors, solar PV, digital infrastructure, defence infrastructure

Source: (USGS, 2025[3])

This mineral wealth underlines ASEAN’s potential to become a cornerstone of global clean energy supply chains. The market for green technologies in the region itself is projected to grow from USD 5 billion in 2020 to USD 20 billion by 2030 and USD 50 billion by 2050 if net-zero policies are actively pursued (The Strategist, 2024[5]).

ASEAN countries have the potential to expand to their presence in downstream processing and refining, especially within Asian supply chains. The growth in Indonesia's nickel refinement stands as the best example, with a 62% increase refined nickel supply between 2021 and 2023 (IEA, 2024[6]). For other minerals, ASEAN countries remain relatively underrepresented in refinement activities compared to their Asian peers. In 2020, the region accounted for only 2% of global aluminium output despite having 23-24% of Bauxite reserves. Regulatory uncertainty, environmental and social concerns, and fluctuating mining laws have constrained investment. For example, concerns over the environmental and social impacts of mining led to the suspension of rare earth mining in Myanmar which had a drastic impact on the prices of dysprosium, yttrium and terbium (Hay, 2023[7]). These considerations pose a persistent challenge that policy makers in the region must face if they hope to scale up refining capacity (see Section V).

1.2. Critical minerals reserves and capacities in India

India possesses considerable reserves of critical minerals, though their development remains limited. The country holds an estimated 7–8% of global REE reserves, including neodymium and praseodymium (USGS, 2025[3]). REE occurrences are widely distributed across multiple states, with around 58,600 km² identified as prospective areas and nearly 145 documented occurrences (India Atomic Minerals Directorate, 2020[8]). Monazite – a mineral containing neodymium, a rare earth used in permanent magnets for the parts and components of Internal Combustion Engine automobiles and electric vehicles – is found in sand, in the beaches of Kerala, Andhra Pradesh, Tamil Nadu, and Odisha. The Indian government pegs monazite reserves at 12.7 million tonnes with concentrations between 0.4% and 4.3% (Nikkei Asia, 2025[9]). However, due to high thorium content, which makes them a crucial cog in India's nuclear energy programs, these deposits are reserved for public sector exploitation under India’s Atomic Energy Act, leaving public sector enterprise Indian Rare Earths Ltd. as the sole operator.

Beyond rare earths, India also has 3% of global natural graphite reserves, ranking among the top five producers globally, and limited but emerging lithium reserves discovered in 2023, though exploration remains at an early stage (Takkar, 2024[10]). In copper, new refining capacity is coming online, with the IEA projecting India’s global refined copper market share to rise from 2.1% in 2023 to 3.5% by 2035 (IEA, 2024[11]). The country also has 44.9 million tonnes of cobalt ore resources, but does not yet produce cobalt due to a lack of refining capacity (IEEFA, 2024[12]). It is also worth noting that estimation of reserves may change as India is increasing exploration efforts.

Despite this geological potential, only an estimated 10–20% of geological capacity has been tapped to date (WEF, 2025[13]). As such, India remains highly import-dependent. Imports account for 60% of domestic graphite consumption for batteries (Ministry of Mines, 2023[14]), while raw mineral imports reached USD 398 million in 2024 and imports of battery materials stood at USD 1.3 billion (Figure 1). Lithium imports alone amounted to USD 11.9 billion between 2017–2023, underlining India’s reliance on foreign supply chains (IEEFA, 2024[12]). Table 2 offers an overview of India’s import reliance for 15 key critical minerals by major import countries.

Figure 1. India’s import value of critical minerals and battery materials (2018 – 2024)

(USD Million)

Note: Raw Minerals= Lithium (Lithium ores and concentrates, and Lithium carbonates), Graphite (Graphite flakes and raw materials for manufacturing artificial graphite), Cobalt (Cobalt ores and concentrates). Processed Minerals= Lithium processed and/or refined raw material, Cobalt processed and/or refined raw material, Artificial graphite. Battery Materials= Lithium cathode materials, Cobalt cathode materials, Graphite cathode materials. Battery Packs= Cell component of batteries and battery pack.

Source: Author's calculations based on data from (World Bank, n.d.[15]).

Table 2. India’s net import reliance for critical minerals

Sl. No.	Critical mineral	Percentage (2020)	Major import sources (2020)
1	Lithium	100%	Chile, Russia, China, Ireland, Belgium
2	Cobalt	100%	China, Belgium, the Netherlands, US, Japan
3	Nickel	100%	Sweden, China, Indonesia, Japan, Philippines
4	Vanadium	100%	Kuwait, Germany, South Africa, Brazil, Thailand
5	Niobium	100%	Brazil, Australia, Canada, South Africa, Indonesia
6	Germanium	100%	China, South Africa, Australia, France, US
7	Rhenium	100%	Russia, UK, the Netherlands, South Africa, China
8	Beryllium	100%	Russia, UK, Netherlands, South Africa, China
9	Tantalum	100%	Australia, Indonesia, South Africa, Malaysia, US
10	Strontium	100%	China, US, Russia, Estonia, Slovenia
11	Zirconium(zircon)	80%	Australia, Indonesia, South Africa, Malaysia, US
12	Graphite(natural)	60%	China, Madagascar, Mozambique, Vietnam, Tanzania
13	Manganese	50%	South Africa, Gabon, Australia, Brazil, China
14	Chromium	2.50%	South Africa, Mozambique, Oman, Switzerland, Turkey
15	Silicon	<1%	China, Malaysia, Norway, Bhutan, Netherlands

Source: (Ministry of Mines, 2023[14]) (Australian Trade and Investment Commission, 2021[16])

To address this import dependence, India has been stepping up strategic international partnerships with countries equipped with large, reliable and stable upstream and mid-stream critical minerals resources. In 2022, it signed an MoU with Australia to jointly develop lithium and cobalt resources, establishing the India-Australia Critical Minerals Investment Partnership (Ministry of Mines, 2023[17]). Australia is the world’s leading producer of lithium, accounting for over 45% of global output, and is the fourth-largest producer of rare earths and cobalt (Hughes, 2025[18]). India also initiated discussions with Canada for long-term supply agreements. With the United Kingdom, India has the UK-India Critical Minerals Processing and Downstream Collaboration Guild which aims to strengthen and diversify critical mineral supply chains as well as the Critical Minerals Supply Chain Observatory which aims to track supply chains and material flows for critical minerals. More recently, India has expanded its outreach to Latin America through a critical minerals cooperation MoU with Brazil, focusing on reciprocal investment, exploration and mining efforts. In parallel, India has joined the Pax Silica Initiative, which should deepen collaboration with the United States and other partners on supply chain resilience for high-purity silica and related materials critical to semiconductors and clean technologies. These partnerships help secure a steady supply of critical minerals and foster bilateral trade relations, enhancing economic cooperation.

The Khanij Bidesh India Ltd. (KABIL) consortium – comprising the National Aluminium Company Ltd, Hindustan Copper Ltd., and Mineral Exploration & Consultancy Ltd. – is central to this strategy. KABIL's mandate is to identify and acquire strategic mineral assets abroad for the domestic manufacturing sectors like electronics, electric vehicles and renewable energy (IBEF, 2024[19]). KABIL has acquired five lithium blocks in Argentina (2024) and signed exploration agreements, while also deepening cooperation with Chile under the expanded India-Chile Preferential Trade Agreement and the proposed Comprehensive Economic Partnership Agreement (CEPA). Coal India is also exploring critical and rare earth minerals for mining in Chile.

These initiatives are complemented by participation in the Forum on Resource Geostrategic Engagement (FORGE) alongside other key partners such as Australia, the US, and Japan to collaborate on advancing diversified, resilient, and secure critical minerals supply chains through both policy initiatives and projects (CSIS, 2026[20]).

Domestically, India launched the National Critical Minerals Mission in 2024 to strengthen the entire value chain – from exploration and mining to processing and recycling – with the goal of self-sufficiency in fulfilling the industrial demands for critical minerals and alignment with its net-zero target for 2070.

Overall, India’s geological potential is significant, particularly in REEs and graphite, but its reliance on imports for key minerals like lithium, cobalt, copper and nickel – which are essential in meeting energy transition goals – remains a critical vulnerability. Bridging this gap will require scaling up domestic exploration and processing capacity, while leveraging international partnerships and ESG-compliant investment to secure resilient supply chains.

Box 1. India-ASEAN relationship in critical minerals supply chains

ASEAN is one of India’s top five trading partners, alongside the United States, China, the United Arab Emirates and the European Union, with total merchandise trade reaching USD 107 billion in 2024 (UN Comtrade, 2024[21]). Trade remains heavily imbalanced, however: India recorded a merchandise trade deficit of USD 35 billion (UN Comtrade, 2024[21]), reflecting ASEAN’s stronger manufacturing base and deeper integration into regional value chains. This asymmetry is even more pronounced in critical minerals and battery-related products, where India remains a net importer and ASEAN a key supplier.

India’s growing demand for minerals has increased its reliance on imports. While China remains India’s largest supplier, ASEAN is also a significant source of battery packs and processed minerals, underscoring the region’s strategic importance for India’s clean-energy transition. At the same time, India’s own refining capacity, reflected in its exports of aluminium and nickel to ASEAN, highlights the potential for more balanced, mutually beneficial trade.

Reducing over-dependence on single-country supply chains will require closer India–ASEAN cooperation in critical mineral supply chains, ranging from upstream extraction and processing to downstream manufacturing. The ongoing review of the ASEAN–India Trade in Goods Agreement presents an opportunity to integrate critical minerals into the trade agenda, encourage investment partnerships, and develop joint strategies for supply-chain resilience. A forward-looking framework that links trade liberalisation with industrial collaboration could help both sides secure access to key resources while supporting regional clean-tech value chains.

Note

← 1.  This percentage is computed based on the latest USGS 2025 data. Different percentages can be found from different sources, discrepancies are due to a recent downward revision of its official reserves from 22 million to 3.5 million metric tons. Nevertheless, Vietnam still ranks among the top six countries globally for rare earth deposits (Rare Earth Exchanges, 2025[36]).