Ensuring essential minerals is crucial for India's goal of green energy

In the rapidly evolving landscape of clean energy, India is taking decisive steps to bolster its indigenous refining capacities and reduce reliance on foreign processing. This strategic move aims to add value domestically and mitigate potential supply chain bottlenecks that could slow its progress towards energy security and industrial competitiveness.

The global shift towards renewable technologies has intensified competition for critical minerals and materials essential for these technologies. China, for instance, controls nearly 60 percent of rare earth element production and dominates the refining of lithium, cobalt, and graphite. India, heavily dependent on imports for key critical minerals, risks supply chain disruptions, making a self-reliant strategy crucial.

To address this challenge, India is looking beyond its borders. Collaborations in exploration, extraction, and processing with the Commonwealth of Independent States (CIS) nations can provide India with stable and diversified mineral supplies. Kazakhstan, a significant producer of uranium and rare earth elements, presents a viable alternative.

Embracing circular economy models is also vital to minimize dependency on virgin mineral extraction. Enhancing recycling technologies can help reduce the demand for primary minerals and promote a more sustainable approach to resource management.

Recognizing the urgency of the situation, the Indian government has launched the National Critical Mineral Mission with a budget of ₹34,300 crore (US$4 billion) over seven years. The initiative includes fast-tracking approvals for mining projects, encouraging international acquisitions, stockpiling reserves, establishing processing parks, promoting recycling, and setting up a Centre of Excellence for research and development.

The Geological Survey of India has intensified exploration efforts, with 368 projects completed, 195 ongoing, and 227 planned. In January, Khanij Bidesh India Limited secured 15,703 hectares in Argentina for lithium mining, ensuring long-term access to essential resources.

Moreover, the government has identified 30 minerals as critical and prioritised their exploration, extraction, and processing. The identified priority order of critical minerals particularly relevant for India includes lithium, cobalt, nickel, copper, and rare earth elements; China holds a special geopolitical significance as a key supplier for these minerals, making it crucial for India's supply security.

India can also leverage bilateral trade frameworks such as the India-US TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative and the Mineral Security Partnership (MSP) to secure long-term offtake agreements with resource-rich nations.

The article aligns with the SDGs of Energy (7) and Climate (13). The researchers Animesh Ghosh, Soumit Pandey, and Vaibhav Chowdhury from the Ashoka Centre for a People-centric Energy Transition (ACPET), Ashoka University, have contributed to this discussion.

As India embarks on its journey towards a net-zero economy by 2070, strategic planning and collaboration will be key to achieving its energy transition goals while maintaining its industrial momentum without relying heavily on foreign suppliers.