India’s energy transition is increasingly visible in daily life, from rooftop solar panels to electric two-wheelers on city roads. These technologies depend on reliable supplies of minerals and materials. Lithium, nickel, cobalt and graphite are used in various battery chemistries, while copper and aluminium support power cables, electrical equipment and transmission infrastructure. Silicon is central to solar cells, while rare earth elements such as neodymium and praseodymium are used in permanent magnets for some wind turbines and electric motors.
As renewable capacity and electric mobility grow, demand for the minerals supporting these technologies is expected to increase. NITI Aayog estimates that, under a net-zero scenario, India’s cumulative demand for critical energy transition minerals could reach around 169 million tonnes over 2025–2070. Meeting this demand will require dependable supplies, stronger domestic capabilities and long-term investment across the mineral value chain.
A supply chain under pressure and need for domestic mining
India imports a large share of several critical minerals, including lithium, cobalt and nickel, which leaves domestic industries exposed to price swings, export restrictions and geopolitical tensions. Competition is also picking up as more countries build out electric mobility, renewable energy and battery manufacturing. When a handful of suppliers provide an essential raw material, one disruption can ripple through manufacturing costs and project timelines.
Domestic exploration has expanded, yet the road from identifying a deposit to commercial production can stretch over several years, and some deposits need complex extraction methods and heavy investment before they make commercial sense.
Policy has moved to open the door. Critical mineral blocks are being made available for mining, and the 2023 amendment to the Mines and Minerals (Development and Regulation) Act changed the auction process and introduced exploration licences. The government has also approved the National Critical Mineral Mission, with a proposed outlay and investment of ₹34,300 crore over seven years (FY2024–25 to FY2030–31). Of this, ₹16,300 crore is government expenditure and ₹18,000 crore is expected investment from public sector undertakings and other stakeholders. The mission covers exploration, mining, processing and recycling, and supports efforts to secure mineral assets overseas.
The harder part is getting projects from paper to production. Exploration, technical assessments, environmental clearances and infrastructure development can all delay availability even after a block has been auctioned. Sustained investment and smoother project development will be needed to translate policy initiatives into operational projects.
Looking beyond borders
Domestic resources alone may not cover every mineral India needs. Khanij Bidesh India Limited (KABIL), a joint venture of NALCO, Hindustan Copper Limited and Mineral Exploration and Consultancy Limited under the Ministry of Mines, is working to secure assets abroad. Its lithium exploration project in Argentina encompasses five lithium brine blocks in Catamarca province covering approximately 15,703 hectares. Such projects can build access over time, although exploration rights should not be confused with commercial production.
Overseas projects carry commercial, geological, and political risks too. Securing a deposit does not guarantee immediate production, and countries may bring in export restrictions or policies that favour domestic processing. Spreading supply across several sources remains important for that reason.
Strengthening mineral security will also require closer collaboration between Indian industries and international mineral-producing regions. Beyond securing mining rights, investment in beneficiation, processing infrastructure, quality assurance and reliable supply arrangements will be essential. Indian companies participating in international mineral value chains can help develop dependable sourcing networks and long-term relationships with producers and industrial consumers.
Processing and recycling
There is still a visible gap between securing raw minerals and turning them into materials manufacturers can use. Closing it calls for investment in refining facilities, technical expertise and research, and China holds a strong position in several critical mineral processing industries, which leaves global supply chains exposed to disruptions and trade restrictions.
Recycling can ease some pressure on primary supplies, since used batteries, electronic waste and industrial scrap contain recoverable materials. In September 2025, the government approved a ₹1,500 crore scheme to promote recovery of critical minerals from secondary sources, including e-waste and spent lithium-ion batteries, under the National Critical Mineral Mission. In an April 2026 update, the Ministry of Mines reported that 58 companies had been declared eligible, with approximately ₹5,000 crore in proposed investment and around 850 kilotonnes per year of pledged recycling capacity. These commitments should not be treated as already operational capacity. Incentives are subject to the scheme’s applicable conditions.
Mining and processing also need careful handling of their footprint, since water use, waste disposal and land requirements can affect nearby communities. Recycling can deliver only as much as the supply of discarded products, the strength of collection systems, and the available recovery technology allow.
Keeping pace with demand
India’s clean energy journey shows how quickly material requirements can climb. Solar installed capacity rose from around 2.8 GW in 2014 to 164.59 GW by July 2026. As of 31 July 2026, total installed non-fossil electricity generation capacity stood at 300.50 GW, or approximately 60.1% of India’s 500 GW non-fossil installed-capacity target for 2030. Based on that July 2026 snapshot, a further 199.50 GW would be needed to meet the target. This illustrates why mining blocks, overseas partnerships, refineries and recycling plants matter today rather than at some later date.
Domestic exploration, overseas partnerships, processing and recycling can each strengthen India’s mineral security. The outcome will depend on how quickly announced projects become actual production and how well the country manages import reliance in the meantime. With net-zero emissions targeted for 2070, the choices made this decade on exploration, processing and recovery will shape the availability and cost of essential materials for years to come. India’s clean energy story is being written in gigawatts, and it will continue to be written, in good part, in tonnes of lithium, copper and rare earths.
<p>The post The Energy Transition’s Mineral Challenge: Can India Secure the Raw Materials It Needs? first appeared on Hello Entrepreneurs.</p>
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