India is dependent on imported goods, whether it's oil, gas or green technology
* Price shocks hasten India's green energy drive
India imports minerals such as lithium and cobalt
Energy security is at risk from processing and refining inefficiencies
Bhasker Tripathi
India's goal is to??install 500 gigawatts (including solar, wind, and hydropower) of green energy by 2030. This will include expanding battery storage, and electric transportation.
Last month, the country announced its latest climate goals. These include a goal of 60% non-fossil power by 2035. This could increase demand for essential minerals.
India is a major importer of several green minerals, including lithium, cobalt, and nickel.
A report from NITI Aayog (the government's premier think tank) found that demand for these minerals will likely rise dramatically by 2030 due to the demand for renewable energy and storage, as well as electric vehicles.
Separate analysis by the Federation of Indian Chambers of Commerce & Industry (FICCI) and Deloitte warned that this growing demand could expose India's supply chain to risks unless India built up its domestic capabilities.
India's energy transformation?is increasingly linked to securing minerals and building up processing capacity. These are areas where India remains dependent on external suppliers.
"Critical Minerals are a real vulnerability for India." Sehr Raheja is a programme officer with the Centre for Science and Environment in Delhi.
Raheja stated that "Batteries and electric vehicles are more directly affected, but the power transition as a whole is not immune."
The Global Race for Minerals
Saloni Sachdeva, a lead energy specialist with the Institute for Energy Economics and Financial Analysis (an energy policy think tank), said that it will take some time to build the entire value-chain domestically.
India launched its National Critical Mineral Mission last year to increase domestic supply by mining, recycling, and overseas sourcing. The progress is slow due to limited participation in the mining auctions and long project timelines.
India's focus is on increasing the mining of these minerals. However, the biggest hurdles are in their processing and refinement.
Sachdeva added that there were concerns about cost-competitiveness of global suppliers, and the lack of clarity regarding who would buy the materials after they are reprocessed.
The race to get these minerals intensifies. The global race for these minerals is intensifying.
Sachdeva, a former Indian diplomat, said that India, despite its late entry into the race, could still play a significant role in recycling, processing and refining, even if they continue to import some materials.
India is the world's third largest producer of electronic waste. It is investing in early efforts to recover minerals from waste. Sachdeva stated that recycling is India's lowest hanging fruit right now.
(source: Reuters)
