The report highlights that India’s pathway to Net Zero by 2070 will be materially shaped by secure, affordable and responsible access to Critical Energy Transition Minerals (CETMs).
- Critical minerals are those minerals which are essential for economic development and national security of a country.
Key Challenges Associated
- Demand Surge: Projected demand for CETMs under Net Zero Scenario is 51% higher than the current policy scenario primarily due to battery-linked minerals demand.
- High Import Dependence: E.g.100% import-dependent for key minerals like lithium, cobalt, nickel.
- Concentration Risk: E.g. dependence on China exposes India to price volatility and supply disruptions.
- Domestic Bottlenecks: Underutilised domestic mining, refining and recycling capabilities, limited private sector participation, limited R&D capabilities.
Policy Suggestions:
- Strengthen Domestic Exploration & Mining: Introduce conditional "First Come, First Served" (FCFS) model in early-stage exploration.
- Build Domestic Innovation (R&D): Launch mission-oriented R&D focused on processing and refining technologies.
- Diversify International Supply: Participate in "value-chain stack" partnerships (e.g., Mineral Security Partnership), Strengthen Khanij Bidesh India Limited (KABIL) for overseas CETM execution.
- Scale Circularity & Refining: Provide financial incentives (capital support, output-linked incentives) to make domestic refining and recycling economically viable.
- Institutional Architecture: Establish a National Critical Raw Material (CRM) Analytical Unit to conduct continuous risk assessments etc.
Other Initiatives for Critical Minerals
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