India's Clean Energy and Manufacturing Ambitions

India's push for clean energy and advanced manufacturing is heavily reliant on critical minerals. These minerals are essential for a range of technologies, including electric vehicles, renewable energy, and advanced manufacturing sectors.

Role of Critical Minerals

• Important minerals include: 
  • Lithium
  • Cobalt
  • Nickel
  • Graphite
  • Copper
  • Rare earth elements
• These minerals are vital for: 
  • Electric vehicles
  • Renewable power storage
  • Semiconductors
  • Defence
  • Advanced manufacturing

Global Supply Concentration

The supply of these minerals is highly concentrated geographically, with the top three refining countries controlling 86% of the market by 2024, up from 82% in 2020.

• Key supply nodes include: 
  • Indonesia for nickel
  • China for cobalt, graphite, and rare earths
• China leads in refining 19 out of 20 strategic minerals, with a market share of about 70%.

Future Outlook

Clean energy transitions will increasingly depend on these minerals, necessitating a scale beyond current production capabilities.

• Potential supply challenges include: 
  • A projected 30% shortfall in copper supply by 2035.
  • An expected deficit in lithium supply by the 2030s due to rising demand.
  • Sharp increases in rare earth demand driven by growth in wind power, electronics, and magnets.

Overall, the strategic importance of mineral security is rising, paralleling the historical significance of oil.