Artificial Intelligence – Cross Sector Thematic – Data centers – Next Lithium moment in strategic mining
Published on 19 Mar 2026
Our AI thematic focuses on the upcoming tsunami in AI infrastructure. In our AI series, following the silica-services theme, this piece takes a deep dive into the opportunity that opens up for strategic metals for Indian companies. Strategic metals are critical to modern technology and industries, but their supply is limited or inflexible (being by-products). Strategic metals include technology metals such as gallium and germanium, and rare earth elements (REEs, total 17 such as dysprosium, scandium, etc.). India has significant REE resources concentrated in monazite minerals; however, extraction is relatively complex and expensive.
In this report, we dig deeper for the developments undertaken by Indian companies to explore this opportunity such as GMDC (REEs, silica) and Vedanta & Hindustan Zinc (REEs and palladium). Some of these companies are potentially positioned to benefit from a structural demand cycle for these minerals. As India develops REE industrial corridors and PLI schemes to build REE related infrastructure, we could significantly reduce our dependence on China across critical mineral supply chains while unlocking over $10bn in domestic value by 2030. However, it would need further government support in terms of environmental clearances as monazite ore contains radioactive thorium, making extraction complex.
