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India’s Critical Minerals Strategy: Strengthening Supply Chains for Clean Energy

The Council on Energy, Environment and Water (CEEW), Centre for Social and Economic Progress, ICRIER, International Institute for Sustainable Development, and Shakti Sustainable Energy Foundation have jointly released a report titled "State of the Sector: Critical Energy Transition Minerals (CETMs) for India." This report highlights the urgent need for a comprehensive strategy to ensure a stable supply of critical minerals essential for India’s clean energy and low-carbon technology initiatives.

Why Critical Minerals Matter for India

Critical minerals like lithium, cobalt, rare earth elements, and nickel are vital for manufacturing solar panels, wind turbines, electric vehicle (EV) batteries, and energy storage systems. More than 50 countries worldwide have developed strategies to strengthen their critical mineral supply chains, recognizing their importance in achieving net-zero goals. India must act decisively to secure its mineral needs and reduce reliance on imports.

Key Insights from the Report

1. Securing the CETM Value Chain
   • The report outlines strategies covering the entire mineral value chain, including exploration, extraction, processing, and recycling.
   • It highlights the role of international partnerships in securing a reliable supply.
2. Addressing Geopolitical & Environmental Concerns
   • India must navigate geopolitical risks associated with mineral dependency on select countries.
   • Sustainable mining and processing practices are crucial to minimizing environmental and social impacts.
3. Strengthening Domestic Capabilities
   • Promoting domestic exploration to reduce import dependency.
   • Enhancing local mineral processing and refining to add value within India.

Key Recommendations for Policy Action

• Boost Domestic Mineral Exploration – Invest in geological surveys and mining technologies.
• Develop Local Processing Capabilities – Reduce reliance on overseas refineries.
• Strengthen International Partnerships – Collaborate with mineral-rich countries for long-term supply security.
• Encourage Recycling & Circular Economy – Promote battery recycling and material recovery.
• Enforce ESG Standards – Ensure responsible mining with high environmental and social safeguards.
• Promote Innovation – Support R&D for alternatives and efficiency improvements in mineral use.