As India embarks on an ambitious journey toward renewable energy, the country is strategically positioning itself to enhance its trade in critical minerals essential for this transition. The Institute for Energy Economics and Financial Analysis (IEEFA) has identified a tremendous opportunity for growth, highlighting the need for India to develop a well-formulated strategy to meet the increasing demand for these vital resources.
IEEFA’s analysis reveals that India currently relies on imports for key minerals, including lithium, cobalt, and nickel, with a 100% dependency. However, the growing global demand for these minerals is expected to more than double by 2030, presenting an exciting opportunity for India to establish itself as a key player in this sector.
To capitalize on this potential, the report encourages India to foster partnerships with mineral-rich nations. “By identifying new international resources and expediting domestic production, India can enhance its trade relationships and secure reliable sources of critical minerals,” stated Charith Konda, energy specialist at IEEFA. Countries such as Australia, Chile, Ghana, and South Africa are seen as valuable partners, offering rich mineral resources that can support India’s ambitious energy goals.
The IEEFA report also highlights the importance of diversifying sources for synthetic and natural graphite, where India currently relies heavily on imports from China. By exploring opportunities in countries like Mozambique, Madagascar, Brazil, and Tanzania, India can strengthen its trade network and ensure a stable supply of essential materials.
Furthermore, with significant imports of copper cathodes and nickel sulphates from Japan and Belgium, India has a unique opportunity to broaden its supplier base, enhancing supply security and resilience. Engaging with the United States, the fifth-largest copper producer globally, can pave the way for new trade partnerships.
Additionally, developing domestic lithium refining capacity will position India favorably within the global lithium supply chain, fostering innovation and trade growth in this emerging sector.
By strategically aligning its trade practices and establishing strong international partnerships, India is poised to lead in the global energy transition, making significant strides in both renewable energy adoption and economic growth.
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