ICRA warns: India's eco-tech jeopardised by mineral imports
ECONOMY & POLICY

ICRA warns: India's eco-tech jeopardised by mineral imports

According to a report by the rating agency Icra, India relies entirely on imports for crucial minerals like lithium, cobalt, and nickel, which are essential for its transition to green technology. The agency expressed concern that this reliance poses a significant risk to India's energy security as it strives to fulfill its net zero commitments by 2070.

In its recent series on critical minerals, ICRA highlighted the subpar quality and quantity of domestically sourced lithium compared to international standards. This could impede India's efforts to decrease its reliance on imports in the near future. Despite the auction of 38 mineral blocks aimed at boosting domestic production, the benefits are not expected to materialise within this decade, leaving India susceptible to potential supply disruptions.

Girishkumar Kadam, Senior Vice-President & Group Head, Corporate Sector Ratings, Icra, stated that global deposits of critical minerals are more concentrated than those of most industrial minerals, fossil fuels, and hydrocarbons. Furthermore, China controls a significant portion (between 65% to 100%) of the global capacity for processing and refining critical minerals like battery-grade lithium, cobalt, manganese, and graphite.

To address the high risk associated with exploring deep-seated or critical minerals compared to surface or bulk minerals, the Government of India has initiated the process of auctioning exploration licenses. This move aims to attract specialized overseas mining companies with a more favorable risk-return framework.

The need to increase domestic production is urgent due to the shift in energy systems from increasing energy density to increasing mineral intensity, which is essential to support the growing adoption of green technologies such as electric vehicles and renewable energy. This shift has accelerated in the post-Covid era, as noted by Icra.

However, Kadam cautioned that due to the early stage of exploration for most of the domestic blocks currently being auctioned, their commercialization and associated benefits are unlikely to fully materialize within the current decade, ending in 2030.

According to a report by the rating agency Icra, India relies entirely on imports for crucial minerals like lithium, cobalt, and nickel, which are essential for its transition to green technology. The agency expressed concern that this reliance poses a significant risk to India's energy security as it strives to fulfill its net zero commitments by 2070. In its recent series on critical minerals, ICRA highlighted the subpar quality and quantity of domestically sourced lithium compared to international standards. This could impede India's efforts to decrease its reliance on imports in the near future. Despite the auction of 38 mineral blocks aimed at boosting domestic production, the benefits are not expected to materialise within this decade, leaving India susceptible to potential supply disruptions. Girishkumar Kadam, Senior Vice-President & Group Head, Corporate Sector Ratings, Icra, stated that global deposits of critical minerals are more concentrated than those of most industrial minerals, fossil fuels, and hydrocarbons. Furthermore, China controls a significant portion (between 65% to 100%) of the global capacity for processing and refining critical minerals like battery-grade lithium, cobalt, manganese, and graphite. To address the high risk associated with exploring deep-seated or critical minerals compared to surface or bulk minerals, the Government of India has initiated the process of auctioning exploration licenses. This move aims to attract specialized overseas mining companies with a more favorable risk-return framework. The need to increase domestic production is urgent due to the shift in energy systems from increasing energy density to increasing mineral intensity, which is essential to support the growing adoption of green technologies such as electric vehicles and renewable energy. This shift has accelerated in the post-Covid era, as noted by Icra. However, Kadam cautioned that due to the early stage of exploration for most of the domestic blocks currently being auctioned, their commercialization and associated benefits are unlikely to fully materialize within the current decade, ending in 2030.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement