India is increasing its focus on renewable energy further, owing to the rising tensions in the Middle East, which create concerns about fuel supply. The country depends on imports for about 80 per cent of its oil and gas, now exposed to global risks. It also relies heavily on imports of key minerals required for clean energy technologies.

India aims for 500 GW in renewables, including solar, wind, and hydro, by 2030. It is also scaling up battery storage and electric vehicles. The current climate goal of the nation aims for 60 per cent of power capacity from non-fossil sources by 2035, which will further increase demand for minerals.

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While India produces some materials like aluminium, copper and graphite, it relies on imports for key minerals such as lithium, cobalt and nickel. A report by NITI Aayog said demand for these minerals is expected to rise sharply by 2030 due to growth in renewable energy, storage and electric vehicles.

A study by the Federation of Indian Chambers of Commerce & Industry and Deloitte warned that rising demand could create supply risks if India does not build domestic capacity.

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Sehr Raheja, programme officer at the Centre for Science and Environment, said, “Critical minerals are a real strategic vulnerability for India. The more immediate weak link is processing and ‌refining, not just mining.”

India has launched a National Critical Mineral Mission to improve supply through mining, recycling and overseas sourcing, but progress has been slow due to project delays and other challenges.

Saloni Sachdeva Michael, lead energy specialist at the Institute for Energy Economics and Financial Analysis, pointed out, “Even if companies want to set up refining units, there are gaps around financing, technology and clarity on who will buy the processed materials.”

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Globally, competition for these minerals is increasing. Countries in Africa are focusing on local processing, while China leads in refining. The United States and European Union are also securing supply chains.

India is also looking at recycling, as it is the third-largest producer of electronic waste. Experts say recycling could be one of the fastest ways to recover critical minerals and support the country’s energy transition.