India's clean-energy push could deepen reliance on imported critical minerals
India's clean-energy shift may create fresh import vulnerabilities, with full dependence on 15 of 23 critical minerals, per a CII-EY report.
India's accelerating shift to clean energy may introduce a fresh layer of import dependence, even as it reduces reliance on traditional fuels. A joint assessment by the Confederation of Indian Industry (CII) and EY finds that the country is currently fully dependent on imports for 15 of the 23 critical minerals essential to the energy transition.
The report notes that the nature of India's energy-security challenge is evolving as renewable energy, battery storage, electric mobility, and modern power infrastructure expand. Minerals such as lithium, nickel, cobalt, silicon, and rare earth elements are set to become increasingly central to this transition.
However, the vulnerability extends beyond mining. Global refining and processing capacity for several minerals is highly concentrated. In 2024, China accounted for 93 per cent of global graphite refining, 85 per cent of rare-earth processing, 79 per cent of cobalt refining, 70 per cent of lithium refining, and 44 per cent of nickel refining.
India's demand for these minerals is projected to rise substantially between 2025 and 2070. Copper alone is expected to account for over 66 million tonnes of cumulative demand, followed by graphite at 46 million tonnes, silicon at 19.5 million tonnes, phosphorus at 16.7 million tonnes, and nickel at 11.5 million tonnes.
The report argues that India's energy-security concerns are shifting from fuel availability toward critical minerals, manufacturing capabilities, and technology supply chains. Electricity is expected to become the primary energy carrier across the economy, with demand projected to grow rapidly through 2035, requiring significant investment in generation, storage, transmission, and distribution infrastructure.
Strengthening domestic exploration, processing, manufacturing, and recycling capabilities will be essential to reducing supply-chain vulnerabilities and building a more resilient energy system as India pursues its 2047 energy-security goals.