Representative image of minerals.
Credit: iStock Photo
New Delhi: India’s demand for critical minerals is expected to be more than double by 2030 with domestic mines taking more than a decade to start operations, according to a new report.
The report, published by the Institute for Energy Economics and Financial Analysis (IEEFA), said the findings show that India remains largely import-dependent for these minerals and their compounds, with 100% import reliance for minerals like lithium, cobalt, and nickel.
IEEFA’s report examines five critical minerals (and their compounds) — cobalt, copper, graphite, lithium and nickel — from the perspectives of import dependency, trade dynamics, domestic availability, and global price fluctuations.
The report also emphasised that India needs a carefully crafted import strategy to mitigate potential trade risks while balancing international relationships to secure these essential minerals.
Apart from expediting domestic production, the report suggested that India should strive to de-risk its critical mineral sourcing by identifying new international resources.
Pointing out that India depends heavily on China for synthetic graphite and natural graphite, the report suggested that it should explore cooperation initiatives with countries like Mozambique, Madagascar, Brazil and Tanzania, which are some of the highest graphite producing-countries.
The transition to clean energy sources has intensified the need for critical minerals. These minerals play a central role in manufacturing clean technology equipment, such as solar panels, wind turbines, electric vehicles and batteries. Besides, they are vital for manufacturing defence and electronic equipment, the report said.
The report also notes the significant efforts that the Indian Government is making to improve domestic production of critical minerals with the auctions by the Ministry of Mines and the planned Critical Minerals Mission.