United States$4-billion investment aimed at securing crucial minerals in India

India is set to significantly increase its investment in the production, recycling, and imports of critical minerals, as the country aims to meet its ambitious electric vehicle (EV) goals and transition to net-zero greenhouse gas emissions by 2070.

According to a report by the World Resources Institute, India would need to increase its lithium battery recycling capacity 60-fold to meet its 2030 EV goal. This is due to the growing demand for battery recycling in India, as the country aims to make 30% of its vehicles electric by 2030.

To address this challenge, the Indian government has launched the "National Critical Mineral Mission," which aims to secure enough critical minerals for India's energy transition. The mission includes simplifying laws to boost critical mineral exploration, allowing private firms to participate, and auctioning 48 blocks of mineral reserves last year, with half reportedly being successful.

India primarily imports critical minerals from countries such as Australia, the United States, and Indonesia, with Australia and the US developing critical mineral supplies jointly and Indonesia becoming increasingly important for nickel imports. However, India remains largely dependent on imports of critical minerals such as cobalt, copper, graphite, lithium, and nickel.

To reduce this reliance, India aims to ensure that 20% of all new batteries are made from recycled materials by 2030 and plans to recover 90% of all battery materials from EVs by 2027. The country's recycling industry, while central to the strategy to reduce import reliance, may struggle to keep up with ambitious targets. Many cancellations of mineral auctions occurred due to unclear data, inadequate capacity from Indian firms, and limited technology.

India has identified 164 million tonnes of copper and 210 million tonnes of graphite to be explored, which could potentially reduce the country's dependence on imports. The demand for critical minerals in India is likely to grow exponentially in the coming years, making it crucial for the country to boost its domestic production and recycling capabilities.

In conclusion, India's ambitious electric vehicle and energy transition goals require significant investment in critical mineral production, recycling, and imports. The country's efforts to secure enough critical minerals for its energy transition and reduce import reliance are crucial for achieving its net-zero greenhouse gas emissions goal by 2070.

This article was published with permission from Thomson Reuters Foundation, a global research center covering humanitarian news, climate change, and more. It is related to topics such as Carbon & Climate, Energy, Manufacturing, Policy & Finance, and Transport, among others.