The Critical Factor in Indias Clean Energy Ambitions

Context:
India aims to achieve 500 Gigawatt renewable energy capacity by 2030 and net zero emissions by 2070. To meet these goals, India must secure critical minerals such as lithium, cobalt, nickel and rare earth elements which are essential for clean energy technologies and electric mobility.

Key Highlights and Details

1. Importance of Critical Minerals
   Critical minerals are essential for electric vehicles, battery storage systems, semiconductors, wind turbines and solar panels. Without assured access to these minerals, Indias clean energy transition will slow down and energy security will be at risk.
2. Import Dependence
   India is almost 100 percent import dependent for lithium, cobalt and nickel.
   It imports over 90 percent of rare earth elements.
   China dominates global supply chains of these minerals which exposes India to strategic vulnerabilities.
3. Government Initiatives
   National Critical Minerals Mission (NCMM) launched with an outlay of Rs 34,300 crore to ensure mineral security.
   National Mineral Exploration Policy 2016 promotes exploration using advanced technology.
   MMDR Amendment Act 2023 allows private sector participation in exploration and mining of critical minerals.
   In 2023, the Geological Survey of India identified 5.9 million tonnes of inferred lithium resources in Reasi district of Jammu and Kashmir.
4. Push for Circular Economy
   India generates four million tonnes of e waste annually but only ten percent is formally recycled.
   Battery Waste Management Rules 2022 introduced Extended Producer Responsibility for recycling lithium ion batteries.
   Emphasis on urban mining to recover minerals like lithium, nickel and cobalt from used batteries and electronics.

Challenges

1. High dependence on imports and geopolitical risks.
2. Lack of domestic refining and processing capability.
3. High exploration cost with uncertain outcomes.
4. Weak recycling ecosystem and dominance of informal sector.
5. Environmental and tribal land concerns in mining areas.

Way Forward

1. Build strategic mineral partnerships with Australia, Chile, Argentina, Bolivia and Congo.
2. Develop domestic refining and processing technologies.
3. Promote research on alternative batteries such as sodium ion and solid state batteries.
4. Strengthen battery recycling infrastructure under Make in India and Atmanirbhar Bharat.
5. Create a National Strategic Mineral Reserve to ensure long term supply.