Electric Mobility Promotion Scheme (EMPS) 2024

India’s Green Transition and the Race for Critical Minerals

India’s ambition to become a global leader in clean energy and sustainable growth hinges on securing a steady supply of critical minerals such as lithium, cobalt, and Rare Earth Elements (REEs). These minerals are the backbone of modern green technologies — from electric vehicles (EVs) to solar panels, wind turbines, and energy storage systems — making them vital for India’s green transition.

Ambitious Clean Energy Goals:

• India aims to achieve 500 GW of renewable energy capacity by 2030.

• It targets net-zero emissions by 2070.

• The government’s focus on sustainability is part of the broader Atmanirbhar Bharat (Self-Reliant India) initiative.

Critical Minerals: The Core of Clean Tech:

India’s clean energy transformation heavily depends on a few strategic resources:

• Lithium & Cobalt: Essential for EV batteries.

• Rare Earth Elements (REEs): Crucial for wind turbines, EV motors, and high-efficiency electronics.

• Nickel & Graphite: Key for battery chemistry and performance.

⚡ India’s EV market is expected to grow at a CAGR of 49% from 2023 to 2030, driven by policies like the Electric Mobility Promotion Scheme (EMPS) 2024.

• In 2023, India’s battery storage market was valued at $2.8 billion, with demand expected to surge significantly by 2030.

Dependency on Imports: A Strategic Vulnerability:

India currently imports the majority of its critical minerals:

• Nearly 100% import dependence for lithium, cobalt, and nickel.

• Over 90% dependence for Rare Earth Elements (REEs).

• China controls 60% of global REE production and 85% of REE processing capacity, giving it a significant strategic advantage.

This reliance creates supply chain vulnerabilities, especially in the face of:

• Geopolitical tensions,

• Export restrictions, and

• Global competition for these scarce resources.

Unlocking Domestic Potential:

India possesses vast untapped mineral reserves, especially:

• Lithium deposits in Jammu & Kashmir, which were recently discovered and are being explored for commercial extraction.

These domestic resources could significantly reduce India’s dependence on imports if supported by the right mining infrastructure and investment.

Strategic Roadmap for Mineral Security:

To build a resilient and secure supply chain, India needs to:

1. Boost Domestic Mining:

   • Expedite exploration of critical minerals in regions like J&K, Karnataka, and Rajasthan.

   • Encourage public-private partnerships to invest in mining operations.

2. Strengthen Infrastructure:

   • Develop processing and refining capabilities for REEs and battery materials.

   • Set up special economic zones (SEZs) for mineral-based industries.

3. Invest in Recycling Technologies:

   • Promote urban mining and battery recycling to extract usable materials from electronic waste and end-of-life batteries.

4. Forge Global Partnerships:

   • Collaborate with resource-rich countries (e.g., Australia, Chile, Argentina) for stable supply agreements.

   • Participate in international critical mineral alliances for technology exchange and market access.

Conclusion

India’s journey toward a sustainable future is intricately tied to how it secures and manages its supply of critical minerals. Reducing import dependence, tapping into domestic reserves, and investing in advanced technologies are essential to achieving its clean energy targets, industrial growth, and national security objectives. Building a resilient mineral value chain will not only advance the Atmanirbhar Bharat mission but also position India as a key player in the global green economy