State of the Sector: Critical Energy Transition Minerals for India

The report examines the criticality of six priority minerals—copper, lithium, manganese, neodymium, nickel, and silicon—essential for India's clean energy transition. It analyzes the global value chain, highlighting China's dominance in midstream processing and the geographical concentration of reserves. The document forecasts India's CETM demand up to 2050, identifies systemic gaps in domestic exploration and refining, and evaluates international policy responses. It concludes with strategic recommendations to enhance India's mineral security through domestic exploration, international cooperation via partnerships like the Mineral Security Partnership (MSP), and the promotion of circular economy practices and ESG standards.

• India's transition to net-zero by 2070 requires a secure supply of Critical Energy Transition Minerals (CETMs), but the country lacks sufficient domestic reserves to meet projected demand for clean technologies.
• Global supply chains for CETMs are highly concentrated; for example, the majority of lithium is produced in Australia, Chile, and China, while cobalt is dominated by the Democratic Republic of Congo and REEs are primarily mined in China.
• China maintains a dominant position in the midstream processing of CETMs, controlling approximately 60% of global lithium processing capacity and 90% of global manganese refining.
• The report identifies six priority minerals for India's energy transition: copper for power grids, lithium for batteries, manganese for wind energy, neodymium for electric vehicle motors, nickel for batteries and electrolysers, and silicon for solar photovoltaics.
• Projected annual embedded demand for CETMs in India is expected to surge by 2050; in a baseline scenario, lithium demand is projected to rise from 4,936 tonnes in 2025 to 62,742 tonnes by 2050.
• Mining projects for CETMs have long lead times; the average lead time from exploration to production is 16.9 years, with nickel mines taking the longest, sometimes over 19 years.
• India's domestic exploration is underdeveloped, with only 10% of its Obvious Geological Potential (OGP) having been explored.
• The Indian government has introduced the Exploration Licence (EL) and Composite Licence (CL) to attract private investment, but the EL system is noted to have weak incentives because it does not confer mining rights to the holder.
• India has established Khanij Bidesh India Limited (KABIL) to identify and acquire strategic mineral assets abroad, with active engagements in Argentina, Australia, and Chile.
• India joined the US-led Mineral Security Partnership (MSP) in June 2023 to collaborate on sustainable supply chains and access a network of global allies.
• The report highlights significant ESG risks in CETM sourcing, noting that 70% of cobalt reserves are in high to very high ESG risk contexts, primarily in the DRC.
• India's recycling sector for batteries and e-waste is heavily reliant on the informal sector, with 72.3% of total employment in hazardous waste falling within informal enterprises.
• The report recommends establishing government-accredited mineral processing labs in each state to provide technical assistance and ensure adherence to safety and environmental standards.

APA

Chadha, R., Bansal, K., Sivamani, G., Goldar, A., Nair, K., Ali, M. S., Verma, R., Goel, S., Moerenhout, T., Raizada, S., Jain, S., Haig, S., Kohli, P. C., Vazirzadeh, C., Jain, R., Warrior, D., & Chandhok, V. (2025). State of the Sector: Critical Energy Transition Minerals for India. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-02/india-critical-energy-transition-minerals-volume-1.pdf

Chicago

Chadha, Rajesh, Karthik Bansal, Ganesh Sivamani, Amrita Goldar, Kartik Nair, Md Sarwar Ali, Ritika Verma, et al. State of the Sector: Critical Energy Transition Minerals for India. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-02/india-critical-energy-transition-minerals-volume-1.pdf.

Wikipedia

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BibTeX

@techreport{chadha2025state, author = {Chadha, Rajesh and Bansal, Karthik and Sivamani, Ganesh and Goldar, Amrita and Nair, Kartik and Ali, Md Sarwar and Verma, Ritika and Goel, Siddharth and Moerenhout, Tom and Raizada, Swasti and Jain, Saumya and Haig, Steven and Kohli, Pranati Chestha and Vazirzadeh, Cina and Jain, Rishabh and Warrior, Dhruv and Chandhok, Vibhuti}, title = {{State of the Sector: Critical Energy Transition Minerals for India}}, institution = {International Institute for Sustainable Development}, year = {2025}, url = {https://www.iisd.org/system/files/2025-02/india-critical-energy-transition-minerals-volume-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }