India needs a steady supply of copper — a critical mineral that plays a major role in clean energy technologies such as electric vehicles and solar power — to support its continued economic growth and its ambitious electrification goals. But with India being so heavily dependent on imported copper, it is vulnerable to global market fluctuations and disruptions in the supply chain that can lead to shortages.
The International Institute for Sustainable Development (IISD), a think tank with headquarters in Winnipeg, Man., has published a new report urging India to devise a copper strategy to address these challenges.
The report goes into more detail about why copper is important to India’s shift to cleaner energy:
India has set an ambitious goal of achieving about 50% cumulative electric power installed capacity from non-fossil sources by 2030 (Press Information Bureau, 2022). It is also a member of the 30 by 30 campaign to drive sales of zero-emission vehicles (International Energy Agency [IEA], 2017). These two transformations will be critical drivers of future copper demand in the country due to the higher copper intensity of these technologies compared to traditional automotive and power technologies. By 2050, India, Vietnam, and Mexico are expected to supplant Germany, Japan, and South Korea as the top five copper-consuming countries globally, and India is forecasted to become the world’s second-largest copper-consuming economy (S&P Global, 2022). However, its per-capita usage will remain lower than that of China, Vietnam, and Mexico (S&P Global, 2022).
“Securing
India’s Copper
Supply: Challenges and the way forward,” by Swasti Raizada & Tom Moerenhout, International Institute for Sustainable Development, June 2024
The IISD report recommends that India form partnerships wtih major copper-producing countries such as Chile, Peru, the Democratic Republic of Congo, Zambia and Australia as a way to both diversify and secure its supply, while also promoting sustainable exploration and mining within its own borders.
The report also recommends that India consider setting up capital or production-linked incentives for its domestic copper smelting, refining and fabrication industry to help attract more investment. It recommends these incentives also play a role in promoting innovation and reducing environmental harm, such as by linking them to copper quality standards and circularity.
“Securing India’s Copper Supply: Challenges and the way forward,” by Swasti Raizada and Tom Moerenhout, was originally published by the International Institute for Sustainable Development (IISD) on July 2, 2024. Download the report.
