This paper “Critical minerals for India’s clean energy transition” by World Resources Institute unpacks the meaning of the term “critical” in “critical minerals” by highlighting the vulnerabilities that affect the availability of these minerals in India. It maps the critical mineral scenario for India by examining the domestic vulnerabilities of India’s critical mineral supplies and unpacking the political economy of global mineral resource flows while contextualizing them for India’s energy transition. Finally, based on these observations, it suggests a way forward for India to secure its critical minerals economy.
Key highlights from the paper are:
▪ The demand for critical minerals in India is expected to rise steeply. The current levels of production indicate a significant domestic supply shortfall, and these minerals are currently being imported from a small group of countries.
▪ To overcome domestic scarcity, mitigate import dependence, and create resilient supply chains, domestic production and processing of these minerals must be enhanced and end-of-life ecosystems developed around recovery and recycling. Adequate institutional capacity and policy–regulatory frameworks are needed to enable these outcomes.
▪ If the socio-environmental impacts of mineral mining are not adequately mitigated, the trust of local communities will be lost, resulting in project delays and cost overruns. To develop resources, a social license to operate is important.
▪ Establishing low-cost economies of scale in mineral processing and manufacturing and promoting innovation are important for domestic clean energy technology manufacturing.
▪ India can build strategic partnerships around critical minerals by increasing investments, enhancing diversification, addressing socio environmental concerns, and leveraging these groupings to strengthen partnerships for securing supplies.
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