The ‘critical factor’ in India’s clean energy ambitions, Pg6

Key Highlights:

• Critical minerals like lithium, cobalt, and REEs are vital for India's clean energy transition and long-term energy goals.
• India aims to achieve 500 GW of renewable energy capacity by 2030 and net-zero emissions by 2070, increasing the importance of securing these minerals.
• India's EV market is projected to grow at a CAGR of 49% from 2023 to 2030, driven by initiatives like the Electric Mobility Promotion Scheme (EMPS) 2024.
• The National Critical Mineral Mission (NCMM) has been launched with a ₹34,300 crore plan to strengthen value chains across exploration, mining, processing, and recovery.

Detailed Insights:

• India relies heavily on imports for critical minerals, with nearly 100% for lithium, cobalt, nickel, and over 90% for REEs, exposing it to supply chain vulnerabilities.
• Geopolitical tensions and trade restrictions, particularly from countries like China, highlight the urgency of building a self-reliant supply chain.
• The National Mineral Exploration Policy (NMEP), launched in 2016, and amendments to the Mines and Minerals (Development and Regulation) Act in 2021 have accelerated exploration.
• In 2023, the Geological Survey of India identified 5.9 million tonnes of inferred lithium resources in J&K, signaling progress toward domestic production.
• The Mines and Minerals (Development and Regulation) Amendment Act, 2023 opened up private exploration, but the sector still faces high costs and regulatory hurdles.
• India generates close to four million metric tonnes of e-waste annually, but only 10% is formally recycled, highlighting the need for advanced recycling facilities.
• The Battery Waste Management Rules, 2022 set recycling targets, but weak implementation and limited infrastructure pose challenges.

Key Concepts Involved:

• Critical Minerals: Minerals essential for modern technologies and economic development, with supply chain vulnerabilities.
• Rare Earth Elements (REEs): A set of seventeen metallic elements crucial for various high-tech applications.
• Atmanirbhar Bharat: A vision for a self-reliant India, reducing dependence on imports and enhancing domestic capabilities.
• Circular Economy: An economic system aimed at minimizing waste and maximizing resource utilization through recycling and reuse.