The ‘critical factor’ in India’s clean energy ambitions

India’s ambition to be a worldwide chief in clear vitality and sustainable progress is determined by securing essential minerals reminiscent of lithium, cobalt and Uncommon Earth Components (REEs). These minerals drive key applied sciences — electrical automobiles (EV), photo voltaic panels, wind generators and vitality storage — making them very important to India’s inexperienced transition and long-term vitality targets. Because the nation goals to attain 500 GW of renewable vitality capability by 2030 and internet zero emissions by 2070, making certain the availability of essential minerals and uncommon earths turns into vital. India’s reliance on imported essential minerals amid world competitors calls for stronger home mining, higher infrastructure and world partnerships.

Investing in mines and trendy recycling applied sciences will construct resilient provide chains and advance the Atmanirbhar Bharat imaginative and prescient within the clear vitality race.

Essential minerals in India’s inexperienced transition

Essential minerals are indispensable to India’s clear vitality targets. Lithium and cobalt are important for EV batteries, with India’s EV market projected to develop at a compound annual progress price (CAGR) of 49% from 2023 to 2030. This will probably be pushed by authorities initiatives such because the Electrical Mobility Promotion Scheme (EMPS) 2024. In 2023, India’s battery storage market was valued at $2.8 billion, with demand anticipated to surge as renewable vitality adoption accelerates.

Nevertheless, India’s reliance on imports for these minerals — almost 100% for lithium, cobalt, nickel and over 90% for REEs — exposes it to provide chain vulnerabilities. Geopolitical tensions, commerce restrictions and world competitors, notably from nations reminiscent of China (which controls 60% of worldwide REE manufacturing and 85% of processing capability), underscore the urgency of constructing a self-reliant provide chain to attain its clear vitality ambitions, industrial progress and nationwide safety.

India has huge untapped mineral potential, with lithium in Jammu and Kashmir (J&Okay) and Rajasthan, and REEs in Odisha and Andhra Pradesh. The Nationwide Mineral Exploration Coverage (NMEP), launched in 2016 and subsequent developments by means of the Mines and Minerals (Growth and Regulation) Act in 2021 has accelerated exploration by encouraging non-public participation and utilizing superior geophysical surveys. In 2023, the Geological Survey of India recognized 5.9 million tonnes of inferred lithium assets in J&Okay, a promising step towards home manufacturing. Final yr alone, auctions of 20 essential mineral blocks overlaying lithium, graphite and REEs attracted bids from each Indian and multinational corporations, signalling rising investor curiosity.

Exploration is simply step one. With India contributing lower than 1% of the worldwide REE manufacturing, it should quickly construct processing and refining capability by means of public-private partnerships. Personal companions can convey superior processing applied sciences and assist recycling infrastructure, whereas home lithium and cobalt pilots want larger authorities backing by means of subsidies, tax breaks and analysis grants to scale successfully.

Funding in mines

Funding in home mining is central to India’s essential mineral technique. The Mines and Minerals (Growth and Regulation) Modification Act, 2023 opened up non-public exploration, however the sector nonetheless faces excessive prices, regulatory hurdles and environmental considerations. In 2022, mining contributed simply 2.5% to India’s GDP, in comparison with 13.6% in Australia. To bridge this hole, the federal government should streamline licensing processes and supply monetary incentives reminiscent of production-linked subsidies to draw non-public capital. The Authorities of India has launched the Nationwide Essential Mineral Mission (NCMM) with a ₹34,300 crore plan to strengthen worth chains throughout exploration, mining, processing and restoration from end-of-life merchandise.

State-backed corporations such because the NMDC have diversified by means of their Australian arm, and outlined plans to enter the essential minerals sector. IREL (India) Restricted (previously Indian Uncommon Earths Ltd) is getting ready to extract neodymium, praseodymium, and dysprosium, however each want stronger non-public partnerships for greenfield tasks. KABIL (Khanij Bidesh India Ltd.), fashioned in 2019 to safe abroad mineral belongings, should expedite acquisitions. In the meantime, the federal government has bolstered home provide safety by means of the E-Waste (Administration) Guidelines, 2022, to boost essential mineral restoration and recycling.

Shifting in direction of a round economic system

Upgrading India’s mining and processing infrastructure is equally essential. Modernising infrastructure requires important funding in mechanised mining gear, automated processing crops and waste administration programs. Infrastructure upgrades additionally prolong to recycling. India generates near 4 million metric tonnes of e-waste yearly, but solely 10% is formally recycled. Superior recycling services may recuperate essential minerals, strengthening the round economic system. The Battery Waste Administration Guidelines, 2022 set recycling targets, however weak implementation and restricted infrastructure pose challenges. Public-private hubs may enhance recycling applied sciences, reduce prices and cut back environmental affect.

India’s clear vitality transition and industrial progress rely upon securing essential minerals by means of mine improvement and a round economic system. Precedence ought to be given to operationalising mining leases, investing in mines, upgrading recycling, fast-tracking exploration in Chhattisgarh, selling city mining, and boosting analysis and improvement to chop import dependence, create jobs and drive innovation.

The Nationwide Essential Mineral Mission and up to date auctions are optimistic steps, however their success requires robust state assist, clear insurance policies and public-private collaboration. A strong mineral ecosystem will drive India’s EV, photo voltaic and storage targets whereas positioning it as a inexperienced economic system chief.

Alkesh Kumar Sharma is Member, Public Enterprises Choice Board and a former Secretary, Ministry of Electronics and IT

Printed – October 16, 2025 12:08 am IST