Syllabus: Distribution of key natural resources across the world (including South Asia and the Indian sub-continent)
India’s clean energy goals and net zero ambitions depend on securing critical minerals such as lithium, cobalt, and Rare Earth Elements (REEs). These are vital for EVs, solar panels, wind turbines, and energy storage, underpinning the country’s 500 GW renewable energy target by 2030 and net-zero by 2070.
Importance of Critical Minerals
- EVs and batteries:
- Lithium and cobalt are essential for EV batteries
- India’s EV market projected to grow at 49% CAGR (2023–2030).
- Battery storage: Market valued at $2.8 billion in 2023 and the demand is expected to rise with renewable adoption.
- Import dependence: India imports ~100% of lithium, cobalt, nickel and >90% of Rare Earth Elements (REEs), creating supply chain vulnerabilities.
- Global competition: China dominates 60% of REE production and 85% of processing, highlighting geopolitical risk.
Domestic Mineral Potential and Exploration
- Resources: Lithium in J&K and Rajasthan; REEs in Odisha and Andhra Pradesh.
- Exploration: Geological Survey of India identified 5.9 million tonnes of inferred lithium in J&K in 2023.
- Policy support: National Mineral Exploration Policy (2016) and Mines & Minerals Act 2021 encourage private participation and advanced surveys.
- Investor interest: 2022–23 auctions of 20 critical mineral blocks attracted Indian and multinational companies.
Investment in Mines and Processing
- Mining contribution: Only 2.5% of India’s GDP vs. 13.6% in Australia.
- Government initiatives:
- National Critical Mineral Mission (NCMM): ₹34,300 crore plan for exploration, mining, processing, and recycling.
- Mines & Minerals Amendment Act 2023 opened private exploration.
- State-backed companies: NMDC, IREL, and KABIL are expanding domestic and overseas operations; however, private partnerships are needed.
- Challenges: High costs, regulatory hurdles, and environmental concerns.
Circular Economy and Recycling
- E-waste: India generates ~4 million tonnes annually, only 10% recycled.
- Battery Waste Management Rules 2022 aim to improve the recovery of critical minerals.
- Infrastructure needs: Mechanised mining, automated processing, waste management, and urban mining hubs.
- Benefits: Reduces import dependence, strengthens supply chains, and supports green transition.
Way Forward
- Operationalise mining leases and fast-track exploration.
- Promote public-private partnerships in mining, processing, and recycling.
- Invest in R&D for sustainable extraction and advanced technologies.
- Leverage the National Critical Mineral Mission to secure supply chains.
- A robust mineral ecosystem will support EVs, solar, storage, create jobs, and position India as a global green economy leader.
Q- How does India’s import dependence on critical minerals such as lithium, cobalt, and REEs affect its energy security? What steps are being taken to reduce this dependency? (15 marks/250 words)