FICCI–Deloitte Report Flags Critical Minerals as Key to India’s Clean Energy and Industrial Future

FICCI, in collaboration with Deloitte, has released a new report highlighting the strategic importance of critical minerals and Rare Earth Elements (REEs) in strengthening India’s clean energy ambitions, industrial competitiveness and long-term economic security.

As India advances towards 500 GW of renewable capacity, 30 percent EV penetration by 2030 and net-zero by 2070, access to lithium, nickel, cobalt, graphite, copper and REEs will be central to achieving these goals.

India’s demand for critical minerals is projected to rise sharply by FY30, driven by rapid growth in electric vehicles, energy storage systems, renewable energy, electronics and defence manufacturing. However, import dependence remains significantly high, with India relying on imports for 100 per cent of its lithium, cobalt and nickel requirements, over 90 per cent of copper and around 60 per cent of natural graphite. The availability of heavy rare earth elements (REEs) is limited and downstream processing capacity remains constrained. Despite geological potential across several mineral categories, domestic production and processing infrastructure are insufficient to meet the country’s projected demand.

The mineral intensity of India’s economic growth is increasing as decarbonisation, electric mobility, battery storage and advanced manufacturing expand. Globally, lithium, graphite and nickel are witnessing the fastest acceleration in demand, largely supported by electric vehicle adoption and grid-scale energy storage expansion. At the same time, global supply chains remain highly concentrated, with mining activities limited to a few countries and refining and midstream processing even more geographically skewed. This concentration heightens exposure to export restrictions, geopolitical disruptions and price volatility.

For India, the principal bottleneck lies in midstream processing, particularly in battery-grade chemicals, magnet materials and high-purity rare earth separation. The absence of commercial-scale refining capacity results in value leakage and continued dependence on external suppliers. Rare earth minerals such as neodymium and praseodymium are strategically critical, especially for permanent magnets used in EV motors and wind turbines, which account for nearly 80 per cent of REE consumption. Although India possesses rare earth deposits, limited large-scale separation, refining and magnet manufacturing capabilities continue to reinforce import reliance.

The report calls for accelerated exploration, expansion of domestic processing hubs, strategic overseas asset acquisition, scaling up recycling and embedding strong ESG standards. Focused execution under the National Critical Mineral Mission can enable India to move from import dependence to resilient, value-added participation in global clean technology supply chains.