This blog is a comprehensive intelligence offering from ClimaVision.
The race for critical minerals is heating up, and India is gearing up to take a leading role in this vital supply chain. With the introduction of the Critical Minerals Mission in the Budget 2024, the Indian government is not just talking the talk but walking the walk toward enhancing domestic mineral exploration, mining, and production. It’s like finally realizing that you can’t just keep borrowing your neighbor’s tools—you need your own toolkit!
The mission aims to foster circularity and innovation in mineral usage, which is crucial as India looks to meet its clean energy goals. The proposed Production Linked Incentive (PLI) scheme will incentivize recycling critical minerals, particularly from e-waste. This could be a game-changer, especially considering how much e-waste we generate. Think of it as turning yesterday’s gadgets into tomorrow’s green technologies—now that’s recycling with a purpose!
Now, let’s get real for a moment. India’s clean energy transition hinges on a steady supply of low-cost clean energy technologies (CETs), and that means we need reliable access to critical minerals. The current landscape shows a heavy reliance on imports from just a few countries, which poses a significant risk to energy security. Prices for these minerals have seen wild fluctuations recently, impacting the profitability of solar power projects across the nation.
But here’s where it gets interesting: while sourcing primary minerals can be tricky, there’s a treasure trove of secondary sources waiting to be tapped. By recycling manufacturing scraps and end-of-life renewable energy systems, India can significantly reduce its dependency on imports. Estimates suggest that adopting a circular economy approach could cut the demand for primary minerals by nearly 18% by 2030—now that’s some serious potential!
Actionable Points for CEOs
- Invest in Recycling Technologies: Explore partnerships with firms specializing in e-waste recycling to secure a steady supply of critical minerals.
- Engage with Policy Makers: Advocate for coherent policies that support both e-waste management and the recycling of spent technologies to streamline processes.
- Focus on Localized Production: Consider investing in domestic mining operations or collaborations that align with the government’s push for self-sufficiency.
Indian Example
- Adani Group provides a compelling example of strategic alignment with circularity principles. Through its renewable energy division, Adani has invested in recycling facilities and sustainable sourcing practices to ensure a steady supply of critical minerals for its projects. By integrating circular economy practices, Adani not only secures its supply chain but also reduces its environmental footprint, setting a benchmark for other Indian corporations to follow.