The Institute for Energy Economics and Financial Analysis (IEEFA) report reveals India’s heavy reliance on imports for critical minerals. 

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Key Highlights of the report

• Import Dependency: India remains highly reliant on imports for critical minerals, especially lithium, cobalt, and nickel, with a full (100%) dependency on foreign supplies for these key resources.
• Import Strategy & Trade Risks: The report emphasizes that India needs a strategic import plan to mitigate trade risks and maintain international partnerships for essential mineral security.
• Key Minerals Assessed: IEEFA examined India’s status in importing and securing five critical minerals—cobalt, copper, graphite, lithium, and nickel—highlighting the country’s 100% reliance on imports for several of these, primarily from limited global sources.

Recommendations for India

• Diversification of sources:  The report advocates for identifying new resources globally, expediting domestic production, and forging partnerships with mineral-rich countries like Australia, Chile, Ghana, and South Africa to diversify supply.
• Graphite Imports: India heavily relies on China for synthetic and natural graphite and could consider partnerships with top-producing nations like Mozambique, Madagascar, Brazil, and Tanzania, particularly under Global South cooperation.
• Copper and Nickel Sourcing: With India’s imports of copper cathodes and nickel sulfates concentrated from Japan and Belgium, diversifying suppliers, such as considering the U.S. (a major copper producer), may enhance supply stability.
• Lithium & Nickel Oxides: Current imports are less concentrated but largely sourced from Russia and China, posing potential trade risks.
• Domestic Refining & Processing: Increasing domestic refining capacity, especially for lithium, could enable India’s integration into the global supply chain. 
  • This includes government-backed initiatives like auctions for critical mineral mining blocks and support for refining technology.

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About Critical Minerals in India

• Definition of Critical Minerals: These minerals are essential for national security and economic stability and are used across industries like electronics, defense, energy, and healthcare, supporting India’s industrial growth and technological advancements.
• China’s Dominance: China is the leading global supplier for six of the twelve minerals identified as crucial for India by 2030.

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