India and Germany are working towards joint development of critical minerals blocks. The Indian government has shared a list of 67 critical mineral mining blocks with Germany. Gottfried von Gemmingen, Head of Economic Cooperation and Development at the German Embassy in New Delhi, confirmed this in an interview with Energy Watch.
“German companies are encouraged to contact these companies to develop individual partnerships,” Gemmingen said. He added that FDI is also possible under the current framework.
Critical Minerals Investment Framework Supports Foreign Participation
India permits 100 percent FDI under the automatic route for mining and exploration of metal and non-metal ores. The Ministry of Mines introduced an exploration licence for deep-seated and critical minerals in July 2023. This move opened exploration to full foreign ownership through the automatic route.
Cooperation Rooted in January Joint Declaration
The partnership builds on the Joint Declaration of Intent on critical minerals. Chancellor Friedrich Merz signed it during his India visit on January 12-13 this year. The two governments signed 19 memorandums and joint declarations during that trip.
“This joint declaration covers cooperation across the entire value chain,” Gemmingen said. He listed exploration, processing, recycling and resilient supply chains as key areas.
The India-Germany joint statement also flagged R&D, value addition and asset development in both countries and third countries as goals.
On the German side, the German Raw Materials Agency and BGR (Federal Institute for Geosciences and Natural Resources) lead implementation. Gemmingen confirmed a second MoU is planned between the Geological Survey of India (GSI) and BGR. Nine centres of excellence have also been identified for joint research funding.
Critical Minerals Processing and Permanent Magnets Draw Focus
Gemmingen pointed to technology and processing as areas of high activity. “We have engaged with the Ministry of Heavy Industries also to look at critical minerals processing for permanent magnets and also for battery storage,” he said.
India’s own auction pipeline continues to move in parallel. The Ministry of Mines launched the eighth tranche of critical and strategic mineral block auctions on July 15. This tranche offered 20 blocks across nine states. Through seven completed tranches, India awarded 56 of 88 critical and strategic blocks. India auctioned a record 212 mineral blocks in FY2025-26, including 22 critical and strategic blocks.
Green Partnership Reaches Halfway Mark
Germany pledged at least EUR 10 billion to India under the Green and Sustainable Development Partnership (GSDP), running from 2022 to 2030. Gemmingen said close to half of this pledge had been committed by the end of last year.
“We committed almost 5 billion by end of last year,” he said. “So we really are at 50 percent by 50 percent of time.”
Most GSDP funding — around 90 percent — is structured as blended finance loans. These loans carry subsidies from the German budget at levels applicable as official development assistance. Technical assistance delivered through GIZ, however, is fully grant-funded.
Energy Cooperation Extends to Coal Transition
Gemmingen traced bilateral energy cooperation back to its fossil-fuel roots, including German machinery supplied to Neyveli Lignite Corporation (now NLC India Ltd). KfW signed a EUR 100 million loan agreement with NLC India in April to support solar generation and battery storage on former mining sites.
“That shows that in this energy transition, we do it together,” Gemmingen said.
The cooperation now extends to coal mine closure as well. Germany is working with the Ministry of Coal on sites nearing closure, with renewable energy planned to support sustainable redevelopment.
Grid Integration Remains a Priority
Germany is also working with the Ministry of Power on grid stabilisation. “This is a big bottleneck in the Indian success story in ramping up renewable energies,” Gemmingen said. On carbon pricing, Germany is collaborating with the Bureau of Energy Efficiency to develop India’s carbon market further.
