Key Details
The OECD’s Critical Minerals in Southeast Asia and India: A Regional Overview examines where minerals are found, where they are processed, and whether India and Southeast Asia can retain more value through manufacturing.
India’s resource and import gap: India holds an estimated 7–8% of global rare-earth reserves and about 3% of natural graphite reserves, yet relies on imports for several minerals and battery inputs. Its battery-material imports reached approximately US$1.3 billion in 2024.
Southeast Asia’s strengths: The region holds about 46% of global nickel reserves. Indonesia and the Philippines together account for 68% of global nickel production, while other Southeast Asian economies have established vehicle, electronics and solar-manufacturing industries.
Concentrated processing: China produces around 92% of refined rare earths used in magnets and 99% of spherical graphite used in electric-vehicle batteries, according to figures cited by the paper.
India–ASEAN trade: Bilateral merchandise trade reached approximately US$107 billion in 2024, with India recording an overall merchandise deficit of about US$35 billion. The OECD identifies the review of the ASEAN–India Trade in Goods Agreement (AITIGA) as an opportunity to develop mineral-related investment and technology partnerships.
Mineral Reserves Do Not Guarantee Industrial Supply
Critical minerals pass through several stages before reaching a battery, motor or solar panel: extraction, refining, component production and assembly. India’s rare-earth deposits and graphite resources do not, by themselves, provide a secure supply of finished industrial inputs. Lithium exploration is also at an early stage. Developing usable materials requires processing technology, finance, skilled workers and manufacturing capacity.
India’s National Critical Minerals Mission addresses this wider chain through exploration, domestic processing, recycling and overseas partnerships. The OECD’s assessment shows why progress must be judged beyond discoveries or access to mines: India also needs reliable supplies of refined materials and components.
Southeast Asia Offers More Than Mineral Deposits
Southeast Asia’s advantage is the combination of mineral production and existing factories. Indonesia has expanded nickel refining, while countries including Thailand, Malaysia and Viet Nam have capabilities in vehicles, electronics, batteries or solar equipment. This creates opportunities to link mineral supply with higher-value manufacturing across the region.
But shifting a processing plant outside China does not necessarily diversify the entire chain. The paper notes that much of Indonesia’s nickel-smelting expansion has relied on Chinese investment. Its experience also illustrates the environmental costs that can accompany rapid, energy-intensive refining. Where investment comes from, how plants operate and what they produce matter alongside their location.
Trade Cooperation Could Connect Complementary Capabilities
India imports processed minerals and battery products from Southeast Asia while seeking to expand its own refining and clean-technology industries. The OECD proposes using the AITIGA review to bring critical minerals into India–ASEAN economic discussions, supporting joint ventures, technology exchange and investment across different stages of production.
The paper also calls for better information on mineral resources and markets, finance for processing and recycling, and stronger technical skills. These measures would help firms plan projects across borders rather than treating each country’s mineral strategy in isolation.
What Are Critical Minerals?
Critical minerals are materials important to economic or strategic activities whose supply could be disrupted. They include lithium, nickel, cobalt, graphite and rare earth elements used in batteries, electric vehicles and other technologies. Supply security depends on processing and manufacturing capacity, not just access to ore.
Policy Relevance
Cooperation with Southeast Asia could complement domestic exploration and overseas mineral acquisitions for India. The practical opportunity is to connect Indian industrial demand with regional resources, processing capacity and manufacturers—while developing capabilities at home.
Two tests will matter. First, do partnerships produce operational refining, component-making and recycling capacity, rather than only agreements or mineral-access commitments? Second, can new projects diversify suppliers without creating fresh dependence on a narrow group of investors or imposing unacceptable costs on local communities and ecosystems?
Follow the Full OECD Policy Paper Here: Critical Minerals in Southeast Asia and India: A Regional Overview