India’s Critical Minerals Drive Clean Energy Transition

India’s clean energy ambitions in 2025 rely heavily on securing critical minerals such as lithium, cobalt and Rare Earth Elements (REEs). These minerals are essential for technologies like electric vehicles (EVs), solar panels, wind turbines and energy storage systems. As India targets 500 GW renewable energy capacity by 2030 and net zero emissions by 2070, ensuring steady supplies of these minerals has become a national priority. The country faces challenges due to high import dependence and global competition, prompting efforts to boost domestic mining, processing and recycling.

Importance of Critical Minerals

Critical minerals are the backbone of India’s green technology sector. Lithium and cobalt power EV batteries, with the EV market expected to grow at 49% CAGR till 2030. Solar and wind energy technologies also depend on REEs like neodymium and dysprosium. India imports nearly all its lithium, cobalt, nickel and over 90% of REEs. This exposes the country to supply risks from geopolitical tensions and trade restrictions, especially given China’s dominance in REE production and processing.

Domestic Mineral Potential and Exploration

India has untapped reserves. Lithium deposits have been found in Jammu and Kashmir and Rajasthan. Odisha and Andhra Pradesh hold REE resources. The Geological Survey of India identified 5.9 million tonnes of inferred lithium in J&K in 2023. Auctions for critical mineral blocks attracted strong interest from Indian and multinational firms. The National Mineral Exploration Policy and the Mines and Minerals (Development and Regulation) Act have encouraged private sector participation and advanced exploration techniques.

Investment in Mining and Processing

Mining contributes only 2.5% to India’s GDP, much lower than countries like Australia. The 2023 amendment to mining laws opened private exploration but challenges remain, including high costs and regulatory hurdles. The government’s ₹34,300 crore National Critical Mineral Mission aims to strengthen the entire value chain from exploration to recycling. Public-private partnerships are key to building processing plants and refining capacity. State companies like NMDC and IREL are expanding into critical minerals, while KABIL focuses on securing overseas assets.

Infrastructure and Recycling for Circular Economy

Upgrading mining infrastructure with mechanisation and automation is vital. India produces nearly four million tonnes of e-waste annually but recycles only 10%. Battery Waste Management Rules set recycling targets, but implementation lags. Developing advanced recycling facilities will recover critical minerals and reduce import dependence. Public-private recycling hubs can lower costs and environmental impact. Promoting urban mining and research in recycling technologies supports a circular economy and sustainable mineral supply.

Policy and Strategic Initiatives

The government is streamlining licensing and offering financial incentives to attract investment. Fast-tracking exploration in mineral-rich states like Chhattisgarh is underway. Strengthening policies and encouraging collaboration between public and private sectors remain priorities. The National Critical Mineral Mission and recent auctions are positive steps. Success depends on clear regulations, state support and innovation to build a robust, self-reliant mineral ecosystem that powers India’s clean energy goals.

Questions for UPSC:

1. Discuss the role of critical minerals in India’s renewable energy transition and the challenges in securing their supply.
2. Critically examine the impact of global geopolitical dynamics on India’s mineral supply chain and energy security.
3. Explain the concept of a circular economy in the context of mineral resource management and its significance for sustainable development.
4. With suitable examples, discuss the importance of public-private partnerships in advancing India’s mining sector and clean energy goals.

Answer Hints:

1. Discuss the role of critical minerals in India’s renewable energy transition and the challenges in securing their supply.

1. Critical minerals like lithium, cobalt, and Rare Earth Elements (REEs) are essential for EV batteries, solar panels, wind turbines, and energy storage systems.
2. India aims for 500 GW renewable capacity by 2030 and net zero emissions by 2070, making mineral supply crucial.
3. India imports nearly 100% of lithium, cobalt, nickel and over 90% of REEs, exposing it to supply chain vulnerabilities.
4. Challenges include geopolitical tensions, trade restrictions, and dominance of China in REE production and processing.
5. Domestic potential exists in Jammu & Kashmir, Rajasthan, Odisha, and Andhra Pradesh, but exploration and processing capacity are limited.
6. Need for investment in mining, processing, recycling infrastructure, and policy reforms to build a resilient supply chain.

2. Critically examine the impact of global geopolitical dynamics on India’s mineral supply chain and energy security.

1. China controls 60% of global REE production and 85% of processing capacity, creating a strategic bottleneck.
2. Geopolitical tensions and trade restrictions disrupt mineral imports, threatening India’s clean energy targets.
3. Global competition for critical minerals intensifies amid rising EV and renewable energy demand worldwide.
4. Dependence on imports from politically sensitive regions increases risks to India’s energy security and industrial growth.
5. India’s National Critical Mineral Mission and overseas acquisitions via KABIL aim to mitigate geopolitical risks.
6. Strengthening domestic mining, processing, and recycling reduces vulnerability to global supply shocks.

3. Explain the concept of a circular economy in the context of mineral resource management and its significance for sustainable development.

1. A circular economy promotes recycling, reuse, and recovery of minerals from end-of-life products and e-waste.
2. India generates about 4 million tonnes of e-waste annually but recycles only 10%, indicating huge recovery potential.
3. Battery Waste Management Rules (2022) set recycling targets to recover critical minerals and reduce import dependence.
4. Advanced recycling infrastructure and urban mining lower environmental impact and conserve finite mineral resources.
5. Promotes sustainable development by reducing mining footprint, conserving resources, and supporting green technologies.
6. Public-private partnerships and research in recycling technologies are vital to operationalize circular economy models.

4. With suitable examples, discuss the importance of public-private partnerships in advancing India’s mining sector and clean energy goals.

1. Public-private partnerships (PPPs) bring advanced technology, capital, and expertise to mining and processing sectors.
2. State companies like NMDC and IREL collaborate with private firms to expand critical mineral extraction and refining.
3. Private participation encouraged by National Mineral Exploration Policy and Mines and Minerals Act boosts exploration efficiency.
4. PPPs facilitate development of modern mechanized mining, automated processing plants, and recycling infrastructure.
5. KABIL’s overseas mineral asset acquisitions exemplify government-private synergy to secure supply chains.
6. Such collaborations accelerate scaling of lithium and cobalt pilot projects through subsidies, tax breaks, and research grants.