The global transition to clean energy sources like electric vehicles relies heavily on critical minerals like lithium, copper, and nickel.
Demand for these minerals is expected to surge in the coming decades, driven by ambitious climate goals.
The International Energy Agency (IEA) emphasizes the need for sustainable supply chains for critical minerals.
India's Dependence and Vulnerability
India lacks domestic reserves of key critical minerals and heavily relies on imports, particularly from China.
This dependence creates vulnerabilities in India's supply chains and manufacturing capabilities.
Government Initiatives
The government amended the Mines and Minerals (Development and Regulation) Act to facilitate private sector participation in critical mineral mining.
Auctions for critical mineral blocks were launched across the country, including lithium reserves in Jammu and Kashmir.
Challenges
Investor interest in the initial auctions has been low, with most blocks receiving no bids.
Reasons for low interest include:
Lack of sufficient data on potential reserves within the blocks.
Technological hurdles, like the absence of proven methods for extracting lithium from clay deposits (as found in J&K).
Looking Ahead: A Long Road to Self-Sufficiency
ICRA, a rating agency, predicts limited domestic production by 2030 due to the early stage of exploration.
India's manufacturing sector might remain vulnerable to supply shocks until domestic production ramps up.
The government is exploring overseas acquisitions of critical mineral resources through Khanij Bidesh India Limited.
India has joined the U.S.-led Mineral Security Partnership to strengthen its position in the global market.
Overall, India faces an uphill battle in securing its critical mineral needs.
While government initiatives and international partnerships are steps in the right direction, overcoming technical challenges and attracting investors are crucial for achieving self-sufficiency.
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