India’s ambition to be a worldwide chief in clear vitality and sustainable development relies on securing essential minerals comparable to lithium, cobalt and Uncommon Earth Parts (REEs). These minerals drive key applied sciences — electrical automobiles (EV), photo voltaic panels, wind generators and vitality storage — making them important to India’s inexperienced transition and long-term vitality targets. Because the nation goals to attain 500 GW of renewable vitality capability by 2030 and web zero emissions by 2070, making certain the provision of essential minerals and uncommon earths turns into necessary. India’s reliance on imported essential minerals amid world competitors calls for stronger home mining, higher infrastructure and world partnerships.
Investing in mines and trendy recycling applied sciences will construct resilient provide chains and advance the Atmanirbhar Bharat imaginative and prescient within the clear vitality race.
Vital minerals in India’s inexperienced transition
Vital minerals are indispensable to India’s clear vitality targets. Lithium and cobalt are important for EV batteries, with India’s EV market projected to develop at a compound annual development charge (CAGR) of 49% from 2023 to 2030. This can be pushed by authorities initiatives such because the Electrical Mobility Promotion Scheme (EMPS) 2024. In 2023, India’s battery storage market was valued at $2.8 billion, with demand anticipated to surge as renewable vitality adoption accelerates.
Nevertheless, India’s reliance on imports for these minerals — almost 100% for lithium, cobalt, nickel and over 90% for REEs — exposes it to provide chain vulnerabilities. Geopolitical tensions, commerce restrictions and world competitors, significantly from nations comparable to China (which controls 60% of worldwide REE manufacturing and 85% of processing capability), underscore the urgency of constructing a self-reliant provide chain to attain its clear vitality ambitions, industrial development and nationwide safety.
India has huge untapped mineral potential, with lithium in Jammu and Kashmir (J&Okay) and Rajasthan, and REEs in Odisha and Andhra Pradesh. The Nationwide Mineral Exploration Coverage (NMEP), launched in 2016 and subsequent developments by the Mines and Minerals (Improvement and Regulation) Act in 2021 has accelerated exploration by encouraging personal participation and utilizing superior geophysical surveys. In 2023, the Geological Survey of India recognized 5.9 million tonnes of inferred lithium assets in J&Okay, a promising step towards home manufacturing. Final 12 months alone, auctions of 20 essential mineral blocks masking lithium, graphite and REEs attracted bids from each Indian and multinational firms, signalling rising investor curiosity.
Exploration is simply step one. With India contributing lower than 1% of the worldwide REE manufacturing, it should quickly construct processing and refining capability by public-private partnerships. Personal companions can convey superior processing applied sciences and assist recycling infrastructure, whereas home lithium and cobalt pilots want larger authorities backing by subsidies, tax breaks and analysis grants to scale successfully.
Funding in mines
Funding in home mining is central to India’s essential mineral technique. The Mines and Minerals (Improvement and Regulation) Modification Act, 2023 opened up personal exploration, however the sector nonetheless faces excessive prices, regulatory hurdles and environmental considerations. In 2022, mining contributed simply 2.5% to India’s GDP, in comparison with 13.6% in Australia. To bridge this hole, the federal government should streamline licensing processes and supply monetary incentives comparable to production-linked subsidies to draw personal capital. The Authorities of India has launched the Nationwide Vital Mineral Mission (NCMM) with a ₹34,300 crore plan to strengthen worth chains throughout exploration, mining, processing and restoration from end-of-life merchandise.
State-backed firms such because the NMDC have diversified by their Australian arm, and outlined plans to enter the essential minerals sector. IREL (India) Restricted (previously Indian Uncommon Earths Ltd) is getting ready to extract neodymium, praseodymium, and dysprosium, however each want stronger personal partnerships for greenfield initiatives. KABIL (Khanij Bidesh India Ltd.), fashioned in 2019 to safe abroad mineral belongings, should expedite acquisitions. In the meantime, the federal government has bolstered home provide safety by the E-Waste (Administration) Guidelines, 2022, to reinforce essential mineral restoration and recycling.
Shifting in the direction of a round economic system
Upgrading India’s mining and processing infrastructure is equally essential. Modernising infrastructure requires vital funding in mechanised mining tools, automated processing crops and waste administration programs. Infrastructure upgrades additionally lengthen to recycling. India generates near 4 million metric tonnes of e-waste yearly, but solely 10% is formally recycled. Superior recycling services may recuperate essential minerals, strengthening the round economic system. The Battery Waste Administration Guidelines, 2022 set recycling targets, however weak implementation and restricted infrastructure pose challenges. Public-private hubs may enhance recycling applied sciences, reduce prices and cut back environmental affect.
India’s clear vitality transition and industrial development depend upon securing essential minerals by mine improvement and a round economic system. Precedence needs to be given to operationalising mining leases, investing in mines, upgrading recycling, fast-tracking exploration in Chhattisgarh, selling city mining, and boosting analysis and improvement to chop import dependence, create jobs and drive innovation.
The Nationwide Vital Mineral Mission and up to date auctions are optimistic steps, however their success requires robust state assist, clear insurance policies and public-private collaboration. A sturdy mineral ecosystem will drive India’s EV, photo voltaic and storage targets whereas positioning it as a inexperienced economic system chief.
Alkesh Kumar Sharma is Member, Public Enterprises Choice Board and a former Secretary, Ministry of Electronics and IT
Printed – October 16, 2025 12:08 am IST
