India has set a target for net zero emissions by 2070 as part of its ambitious climate strategy, but it faces significant challenges in achieving both short- and long-term goals. Key hurdles include securing adequate investments, addressing technical and operational issues and establishing a just transition framework. A critical concern is ensuring resilient access to clean energy technologies and the raw materials necessary for their production.
Renewable energy technologies, such as solar, wind and nuclear, require a diverse array of minerals, significantly more than traditional energy generation equipment. The same is true for electric vehicles compared to conventional internal combustion engine vehicles, particularly regarding the batteries essential for energy storage and mobility. As countries globally aim for net zero emissions, the demand for minerals needed for this transition is projected to increase dramatically.
New mining operations are time-consuming to establish, and the rapid rise in demand could lead to price spikes and shortages, potentially slowing the transition. To address this, many nations are developing strategies to secure supplies of critical minerals vital for their economies. A 2023 study by CSEP identified 22 minerals as critical for India, while a report from the Ministry of Mines listed 30. Key minerals such as cobalt, copper, lithium, neodymium, nickel, and silicon are essential for manufacturing major green technologies like solar panels, wind turbines and batteries.
Most global production and processing of these critical minerals is concentrated in a few regions, which raises concerns for India as it seeks to establish domestic supply chains for green technology manufacturing. Understanding the demand for these minerals is crucial to mitigate vulnerabilities and ensure steady supply chains.
The most important clean energy technologies for India’s transition are solar PVs, wind turbines and battery energy storage systems. The types and quantities of critical minerals needed will depend on the required clean energy capacity, recycling rates, equipment lifespan, and technology types. For instance, the demand for copper in clean energy equipment is expected to rise more than 5.3 times between FY2025 and FY2047, while neodymium demand may increase over tenfold due to wind turbine requirements. Lithium demand for battery systems will also see exponential growth as renewable energy installations expand.
Currently, India is entirely dependent on imports for neodymium and lithium and is a net importer of copper despite having domestic reserves. To address this, policymakers can develop mineral-specific strategies to create resilient supply chains for India’s manufacturing needs. For minerals where domestic production exists but self-sufficiency is low (like copper and rare earth elements), priority should be given to allocating mining leases and attracting investment. For minerals with potential resources but no current production (such as lithium and cobalt), exploration efforts must be ramped up to convert these resources into economically viable reserves. For minerals without known domestic availability (like gallium and germanium), India should collaborate with partner countries to secure supply chains through foreign acquisitions, trade agreements, and knowledge sharing.
Increasing R&D investment is also critical for exploring alternative technologies and substitute minerals for clean energy applications. Innovations can reduce mineral requirements per technology unit and lessen the demand for hard-to-procure materials. For instance, developing commercially viable alternatives like sodium-ion or vanadium redox flow batteries could mitigate lithium demand. Extending the lifespan of clean energy technologies would also push back the need for replacements, allowing more time to secure critical mineral supplies or transition to less resource-intensive technologies.
Finally, recycling existing stocks of critical minerals, such as those found in e-waste, can help meet manufacturing needs without additional mining requirements. Implementing these strategies will enhance India’s access to critical mineral and green technology supply chains, supporting the country in achieving its climate goals.
