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Navigating India’s clean energy transition: The role of critical minerals

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India’s transition to clean energy is deeply intertwined with the availability and sustainability of critical minerals. These minerals, such as lithium, cobalt, copper and nickel, are essential for the development of technologies like electric vehicle batteries and renewable energy storage systems. India’s heavy reliance on imports for these minerals, coupled with the complex geopolitical landscape, presents significant challenges.

The World Resources Institute recently published a working paper, “Critical Minerals for India’s Clean Energy Transition,” which delves into these challenges. It notes the steep rise in demand for critical minerals and significant domestic supply shortfalls, forcing India to rely on a small group of countries for imports. To address this, the paper suggests enhancing domestic production and processing capabilities, developing ecosystems for recycling and recovery, and building robust policy and regulatory frameworks.

The paper, authored by Niharika Tagotra, Nidhi Srivastava, Abhinav Sharma, and T.S. Gowthami, also emphasizes the socio-environmental impacts of mining and the importance of gaining the trust of local communities to avoid delays and cost overruns. It also explores the global dynamics of the critical minerals economy, noting China’s dominance in the sector and urging India to establish economies of scale in mineral processing and manufacturing to strengthen its position.

The authors argue:

To overcome domestic scarcity, mitigate import dependence, and create resilient supply chains, domestic production and processing of these minerals must be enhanced and end-of-life ecosystems developed around recovery and recycling. Adequate institutional capacity and policy–regulatory frameworks are needed to enable these outcomes.

“Critical Minerals for India’s Clean Energy Transition,” by Niharika Tagotra, Nidhi Srivastava, Abhinav Sharma, & T.S. Gowthami. Working Paper, World Resources Institute, June 2024. 

Read the working paper originally published by the World Resources Institute on July 22, 2024.

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