India’s Green Transition Faces Mineral Supply Challenge Amid Global Tensions
Rising tensions in the Middle East are prompting India to accelerate its shift towards renewable energy. However, the country faces a parallel challenge as it depends heavily on imports for the minerals required to sustain its green transition.
India currently imports around 80 percent of its oil and gas needs. Consequently, the push towards renewable energy has gained urgency. The country aims to install 500 gigawatts of green energy capacity by 2030, including solar, wind and hydropower. In addition, it plans to expand battery storage and electric mobility to support this transition.
Growing Demand For Critical Minerals
India’s latest climate targets, announced recently, aim to achieve 60 percent of power capacity from non-fossil fuel sources by 2035. As a result, demand for critical minerals is expected to rise significantly.
While India produces certain materials such as copper and graphite, it remains reliant on imports for key minerals including lithium, cobalt and nickel. These resources are essential for manufacturing batteries, electric vehicles and other clean technologies.
A report by the government’s policy think tank highlighted that demand for these minerals could surge sharply by 2030. Similarly, industry analysis has warned that such rising demand may expose India to supply chain vulnerabilities unless domestic capabilities improve.
Strategic Vulnerabilities And Policy Choices
India’s energy transition is increasingly linked to its ability to secure critical minerals and build processing infrastructure. However, the country continues to depend on foreign suppliers for both raw materials and refining capabilities.
Experts emphasise that the challenge lies not only in mining but also in processing and refining. These stages require significant investment, advanced technology and clear market structures.
At the same time, policymakers face difficult decisions regarding resource allocation. They must determine whether to prioritise mining, refining or recycling, each of which involves long timelines and substantial capital.
Global Competition Intensifies
The race for critical minerals has intensified globally. Resource-rich nations are seeking to increase domestic value addition, while major economies are strengthening their supply chains.
India has taken initial steps by launching a national mission to boost domestic mineral supply through mining, recycling and overseas partnerships. However, progress has been slow due to limited participation in auctions, regulatory hurdles and environmental concerns.
Furthermore, establishing refining capacity remains a significant hurdle. Companies face challenges related to financing, access to technology and uncertainty around demand for processed materials. Cost competitiveness with established global suppliers also remains a concern.
Recycling Offers Immediate Opportunity
Despite these challenges, recycling presents a promising pathway. India is already one of the largest producers of electronic waste globally and has begun investing in technologies to recover valuable minerals from discarded materials.
Recycling offers a relatively quicker and more accessible solution compared to building new mining or refining capacity. Therefore, it could play a crucial role in reducing import dependence in the near term.
Ultimately, India’s transition to clean energy now depends not only on expanding renewable capacity but also on securing the material resources required to sustain it in an increasingly competitive global environment.
With inputs from Reuters
