+
India's Critical Mineral Imports Threaten Energy Security
POWER & RENEWABLE ENERGY

India's Critical Mineral Imports Threaten Energy Security

India's reliance on imports for essential minerals like lithium, cobalt, and nickel poses a significant threat to its energy security and its net zero commitments by 2070, according to a recent report by the rating agency ICRA. The nation's domestic supplies of these critical minerals are of inferior quality and insufficient quantity compared to global standards, jeopardizing efforts to reduce import dependency in the near future.

ICRA's series on critical minerals reveals that despite the auction of 38 mineral blocks to boost domestic production, meaningful benefits are unlikely to be realized this decade. The country remains susceptible to potential supply shocks, especially given the global concentration of critical mineral deposits and China's dominance in processing and refining these materials.

Girishkumar Kadam, Senior Vice-President & Group Head, Corporate Sector Ratings at ICRA, highlighted that China controls 65%-100% of the global capacity for making battery-grade lithium, cobalt, manganese, and graphite. This monopoly further exacerbates India's vulnerabilities.

In response, the Government of India has initiated the auctioning of exploration licenses to attract specialized overseas mining companies. This strategy aims to tap into the expertise needed for exploring deep-seated minerals, a riskier endeavor compared to surface or bulk minerals.

The urgency to ramp up domestic production is fueled by the shift in energy systems from increasing energy density to increasing mineral intensity, crucial for the proliferation of green technologies like electric vehicles and renewable energy. However, Kadam noted that the commercialization of the currently auctioned domestic blocks is unlikely to be fully realized before 2030.

To mitigate its dependency, India is pursuing international acquisitions of critical mineral assets in countries such as Argentina, Chile, Australia, Zambia, and Congo. Domestically, there is a push to incentivize the development of critical mineral processing technologies, such as beneficiation and leaching.

The government is auctioning two lithium blocks in Jammu & Kashmir, which contain clay deposits. While established technologies exist for extracting lithium from hard-rock and brine deposits, methods for clay extraction remain unproven globally, presenting additional challenges.

India's strategy also includes joining the US-led Mineral Security Partnership and enhancing domestic policies like the Battery Waste Management Rules to focus on circular supply chains. However, ICRA warns that the infrastructure necessary to meet the government's ambitious critical mineral recycling targets is still underdeveloped.

This comprehensive approach underscores the critical need for India to secure a stable supply of essential minerals to support its green technology ambitions and energy security.

India's reliance on imports for essential minerals like lithium, cobalt, and nickel poses a significant threat to its energy security and its net zero commitments by 2070, according to a recent report by the rating agency ICRA. The nation's domestic supplies of these critical minerals are of inferior quality and insufficient quantity compared to global standards, jeopardizing efforts to reduce import dependency in the near future. ICRA's series on critical minerals reveals that despite the auction of 38 mineral blocks to boost domestic production, meaningful benefits are unlikely to be realized this decade. The country remains susceptible to potential supply shocks, especially given the global concentration of critical mineral deposits and China's dominance in processing and refining these materials. Girishkumar Kadam, Senior Vice-President & Group Head, Corporate Sector Ratings at ICRA, highlighted that China controls 65%-100% of the global capacity for making battery-grade lithium, cobalt, manganese, and graphite. This monopoly further exacerbates India's vulnerabilities. In response, the Government of India has initiated the auctioning of exploration licenses to attract specialized overseas mining companies. This strategy aims to tap into the expertise needed for exploring deep-seated minerals, a riskier endeavor compared to surface or bulk minerals. The urgency to ramp up domestic production is fueled by the shift in energy systems from increasing energy density to increasing mineral intensity, crucial for the proliferation of green technologies like electric vehicles and renewable energy. However, Kadam noted that the commercialization of the currently auctioned domestic blocks is unlikely to be fully realized before 2030. To mitigate its dependency, India is pursuing international acquisitions of critical mineral assets in countries such as Argentina, Chile, Australia, Zambia, and Congo. Domestically, there is a push to incentivize the development of critical mineral processing technologies, such as beneficiation and leaching. The government is auctioning two lithium blocks in Jammu & Kashmir, which contain clay deposits. While established technologies exist for extracting lithium from hard-rock and brine deposits, methods for clay extraction remain unproven globally, presenting additional challenges. India's strategy also includes joining the US-led Mineral Security Partnership and enhancing domestic policies like the Battery Waste Management Rules to focus on circular supply chains. However, ICRA warns that the infrastructure necessary to meet the government's ambitious critical mineral recycling targets is still underdeveloped. This comprehensive approach underscores the critical need for India to secure a stable supply of essential minerals to support its green technology ambitions and energy security.

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?