From pv magazine India
India must carefully craft its import strategy to navigate potential trade risks while maintaining international ties for procuring minerals essential to its energy transition, according to a new report by IEEFA.
The report analyzes five critical minerals – cobalt, copper, graphite, lithium, and nickel – assessing import dependency, trade dynamics, domestic availability, and global price fluctuations. It reveals that India is heavily reliant on imports for these minerals, with a 100% dependency on lithium, cobalt, and nickel.
The report also states that demand for critical minerals is projected to more than double by 2030, while domestic mines will require over a decade to begin production.
“India should strive to de-risk its critical minerals sourcing by identifying new international resources and expediting domestic production. A concerted effort to partner with and foster bilateral relations with mineral-rich nations should be a priority for India,” said IEEFA Energy Specialist Charith Konda. “The country can also explore investment opportunities in resource-rich, friendly nations, such as Australia and Chile, as well as African countries like Ghana and South Africa.”
The report identifies synthetic graphite and natural graphite as minerals requiring policy intervention to diversify procurement sources.
“For both variants of graphite, India depends heavily on China. Mozambique, Madagascar, Brazil, and Tanzania are some countries with the highest graphite production. As part of the Global South cooperation initiatives, these countries could be favourable partners for India for graphite trading,” said IEEFA Energy Analyst Kaira Rakheja.
India relies heavily on imports for copper cathodes and nickel sulfates, sourcing them from only two countries: Japan and Belgium. The report suggests that India could diversify its suppliers by considering the United States, the fifth-largest copper producer in the world, to enhance supply security.
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