According to the Economic Survey, India’s ongoing efforts to reduce coal dependence will lead to a significant rise in the import of critical minerals. The survey underscores the nation’s need to enhance its supply of essential minerals as it transitions toward cleaner energy sources.
The shift away from coal is part of India’s broader strategy to meet its climate commitments and reduce carbon emissions. As the country ramps up its renewable energy capacity, the demand for critical minerals, such as lithium, cobalt, and rare earth elements, is expected to increase substantially. These minerals are crucial for the production of batteries, electric vehicles, and other clean energy technologies.
The survey highlights that India currently lacks sufficient domestic reserves of many of these critical minerals, necessitating increased imports to meet the growing demand. This dependency on foreign sources poses challenges, including supply chain vulnerabilities and price volatility.
To address these issues, the survey recommends diversifying the supply sources and securing long-term agreements with key mineral-producing countries. It also suggests bolstering domestic exploration and production capabilities through investment in advanced mining technologies and regulatory reforms to attract private sector participation.
Additionally, the survey points out the importance of recycling and reusing critical minerals to reduce dependency on imports. Developing a robust recycling infrastructure can help mitigate supply risks and support sustainable resource management.
The transition to cleaner energy is expected to drive economic growth by creating new industries and job opportunities. However, it also requires careful management of the associated risks, particularly in ensuring a stable and affordable supply of critical minerals.
India’s government is expected to play a pivotal role in facilitating this transition by implementing policies that promote investment in the critical minerals sector and by fostering international collaborations. The survey emphasizes that achieving a balanced and secure supply of critical minerals is essential for the country’s energy security and long-term economic prosperity.
As India progresses towards its energy transition goals, the focus on critical minerals will become increasingly central to its strategic planning and policy-making efforts.
Get comprehensive supply chain report news updates at The Supply Chain Report. For international trade tools, see ADAMftd.com.
#IndiaEnergyTransition #CoalPhaseDown #CriticalMinerals #MineralImports #CleanEnergyFuture #LithiumDemand #CobaltSupply #RareEarthElements #RenewableEnergy #SustainableMining #EnergyTransition #MineralSupplyChain #EconomicSurvey #GreenEnergy #RecyclingMinerals
