India’s Critical Mineral Dependency Hinders Energy Transition

On 28th October, 2024, according to the Institute for Energy Economics and Financial Analysis (IEEFA), India’s dependence on imports for key minerals like lithium, cobalt, and nickel could impact its energy transition goals, with domestic production of these minerals expected to take over a decade to begin.

Key Points

Demand Surge and Supply Challenges: India’s need for critical minerals — including cobalt, copper, graphite, lithium, and nickel — is projected to more than double by 2030.
The country currently relies 100% on imports for minerals such as lithium and nickel, raising concerns about supply stability amid global trade dynamics.
Strategic International Partnerships: IEEFA suggests India mitigate trade risks by building relationships with mineral-rich nations like Australia, Chile, and South Africa. India could also collaborate with graphite-rich countries like Mozambique and Brazil to diversify its supply chain.
For minerals like copper and nickel sulfate, the report recommends India consider diversifying suppliers beyond its current reliance on Japan and Belgium.
Domestic Initiatives and Government Support: The Indian government has initiated auctions for critical mineral mining blocks as part of the Critical Minerals Mission, aiming to boost refining and processing capabilities.
Renewable Energy Targets: India, aiming for 500 GW of non-fossil-based electricity by 2030, currently has 201 GW in renewable capacity, with solar energy leading at 91 GW.