Policy Recommendations from WSDS 2025 Thematic Track on Financing critical Mineral Acquisitions – De -Risking Investments & Strengthening Financing Ecosystems

Policy Recommendations from WSDS Thematic Track on Critical Minerals

Set up Reprocessing Parks and the Need for Purchasing End-of-Life Waste

Panel members stressed the political importance of adding circular economy infrastructure into the critical mineral’s ecosystem in India. A major recommendation was to define state-backed reprocessing parks, backed by viability gap funding (VGF), and equipment grants. This would also allow recyclers to enter the space more easily in terms of land acquisition, environmental clearance, and utility access. OEMs would also be required to procure end-of-life waste on a fixed price basis which would create predictable demand conditions for recyclers and the private sector to begin investing in the recycling and resource recovery space at scale.

Modernize Mining Codes to Allow for Junior Exploration Agencies (Bottom-Up Exploration)

The prevailing auction-centric allocation model was seen as ill-suited to early-stage exploration. The recommendation was to update the mining code to allow for an open application system for small-scale explorers with an easy licensing system, low upfront costs, and phased commitments to promote catalytic risk-taking on the part of junior players and promote a greater awareness of India's geological base in critical minerals.

Develop Specific Financial Instruments to De-risk CRM Value Chain Funding

A main theme throughout the discussion was the absence of suitable capital for the critical minerals’ investments, especially exploration, refining, and advanced materials. There were a range of India-specific financial instruments called for by panel members:

• Sovereign investment approaches to acquire the minerals for strategic use
• Export credit guarantees for international operations
• Public-private financing vehicles for processing parks (similar to REITs)
• Risk insurance/hedge in areas of technology obsolescence on fast-evolving high-tech areas (battery chemistries)

These financial instruments would de-risk early-stage investment, crowd in private capital, and create long-standing value chains in support of targets emerging from India's broader energy transition.