India Extends Auction of Deep-Sea Blocks Containing Critical Minerals

India has decided to extend the auction of deep-sea blocks containing critical minerals used in electric vehicle batteries and other products until May 1, according to a spokesperson at India’s Ministry of Mines. This decision comes as China, a major global producer of critical minerals, has been reducing exports due to trade tensions with the United States.

In November, India launched the first tranche of an auction comprising 13 offshore deep-sea mineral blocks, including lime mud, construction sand, and polymetallic nodule blocks. These blocks are rich in minerals such as cobalt, copper, manganese, and nickel.

The initial bid deadline of February 27 was extended to April 2 and has now been further extended to allow interested companies more time to study the blocks and participate in the auction. The move aims to encourage wider participation from potential bidders.

While some opposition parties have called for the cancellation of the auction citing environmental risks, the mines minister has stated that consultations were held with relevant ministries before the auction was launched. However, India currently lacks the expertise in seabed mining to extract these critical minerals.

Indian mining and cement companies have sought technical assistance from Dutch shipbuilder Royal IHC as they prepare to bid for deep-sea blocks. Despite limited success in onshore critical minerals auctions, India is keen on accelerating seabed mineral exploration to support its energy transition goals.

As the world’s third-largest emitter of greenhouse gases, India aims to increase its renewable energy capacity to 500 gigawatts by 2030 and achieve net zero emissions by 2070. The country’s focus on securing a stable supply of raw materials for its energy transition underscores the importance of deep-sea mineral exploration.

(Source: Reuters – Reporting by Neha Arora; editing by Jason Neely)