India’s Renewable Energy Drive Exposes Reliance on Foreign Mineral Supplies

The conflict in the Middle East is pushing India, which imports 80 percent of its oil and gas, to accelerate its shift to renewables, but the country is also dependent on imports for the minerals and rare earth metals needed to power its green transition. India aims to install 500 gigawatts of green energy capacity including solar, wind and hydropower by 2030, alongside expanding battery storage and electric transport.

The country’s latest climate goals, announced last month, also aim for 60 percent power capacity from non-fossil sources by 2035, which could further increase demand for critical minerals. While India produces some green minerals like copper and graphite, it remains highly dependent on imports for several others such as lithium, cobalt and nickel.

A report by NITI Aayog, the government’s premier think-tank, found demand for these minerals is likely to rise sharply by 2030, driven by demand for renewable energy, storage and electric vehicles.

A separate analysis by the Federation of Indian Chambers of Commerce & Industry and Deloitte warned this rising demand could expose India to supply chain risks unless it built domestic capabilities.

India’s energy transition is increasingly tied to securing these minerals and building processing capacity, areas where it remains dependent on foreign suppliers. It also faces difficult choices on where to invest, whether to prioritize mining, processing or recycling, each requiring time, capital and technological capability, energy experts told Thomson Reuters Foundation.

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

“Batteries, electric vehicles and clean-tech manufacturing are more directly exposed, but the broader power transition is not immune,” Raheja said.

Building the entire value chain domestically will take time, said Saloni Sachdeva Michael, lead energy specialist.