The race for critical raw materials for a decarbonised India

Defined as the "metal of electrification," copper is a critical mineral for solar panels, wind turbines, electric vehicles (EVs), power grids etc, and its availability is intricately tied to the success of India’s carbon-constrained future. Its importance is evident from the fact that electric cars require nearly 83 kg of the metal, four times the amount used in traditional internal combustion vehicles (23 kg). Even other renewable energy technologies, such as solar and wind, smart grids also demand significantly more copper than traditional fossil-fuel based systems- up to five times more, on average.

Its recyclability—a lifecycle of nearly 50 years, according to the International Copper Association (ICA)— and ductility-- its ability to be bent and shaped into wires and sheets-- and reduced maintenance costs, reduces copper’s environmental impact. Analysts at S&P Global attribute the soaring demand of copper to the increasing renewable energy drive. They forecast doubling of copper demand to 50 million metric tons by 2035, rising further to touch 53 million metric tons by 2050. It is more than all the copper consumed in the world between 1900 and 2021.

Creating a circular economy

Moreover, recycling processes can reduce sulphur dioxide emissions by 65%-90% depending on the recycling technology. “Therefore, by creating a closed-loop or circular economy within the value chain, India can significantly lower its dependence on imports, contribute to emission reduction, and make strides towards sustainable development,’’ argues SouvickBhattarcharya   Associate Director and Senior Fellow at the New Delhi-based The Energy and Research Institute.

However, copper is not the only critical mineral in short supply. Nickel and cobalt, too, play pivotal roles in renewable energy systems and electrification. It is particularly important in the production of lithium-ion batteries and large-scale energy storage systems. Its high energy density, conductivity, and corrosion resistance make it ideal for use in battery cathodes, geothermal plants, wind turbines, and hydropower systems. According to a report by NITI Aayog, the country’s premier think tank, recycled lithium-ion batteries can recover 95 percent of valuable metals like lithium, copper, and cobalt, reducing the need for virgin materials imports.

The growth of renewable energy, such as intermittent solar and wind energy for power generation worldwide too have boosted the demand for battery-led energy storage. Hence, Li-ion batteries have become a dominant technology for geothermal, hydrogen, hydropower as well as carbon capture and storage given its high storage capacity and its release on a real-time basis. This growing reliance on nickel batteries is putting immense pressure on the global supply chains.

Recycling as a critical strategy

Hence, recycling of batteries is emerging as a critical strategy for nickel recovery. Studies show that lithium-ion battery waste contains significant amounts of nickel, which can be recovered through hydrometallurgical processes. These methods can recover up to 70% of nickel from waste batteries alongside other valuable metals like cobalt and lithium. Therefore, battery recycling initiatives would prove to be very crucial in supporting the growing demand for nickel and other battery metals.

This surge in nickel demand, combined with depletion of high-grade ores, is also pushing mining companies to explore previously untapped nickel deposits. World-wide there has been a focus on identifying low-grade nickel and copper resources and economically unattractive deposits as alternative sources. As a result, the user industry is expected to increasingly rely on both primary and secondary sources, such as mine tailings and industrial waste.

Indian companies are taking important steps to scale up domestic production of critical minerals like nickel and cobalt. These efforts are aimed at reducing India’s dependence on imports and ensuring a more self-reliant supply of these essential resources. By investing in mining and production capabilities within the country, they are positioning India to better meet the growing demand for these minerals.

“In the short term, India should focus on acquiring key minerals assets abroad to reduce its reliance on imports and secure a stable supply of critical resources. Initiatives like Coal India’s plan to acquire lithium, nickel, and cobalt assets in foreign countries reflect this approach, “says Bhattarcharya of TERI.  India has already conducted four tranches of auctions for domestic critical minerals, with four blocks containing nickel and another four blocks containing copper auctioned so far.

India must focus on becoming a global leader in manufacturing of renewable energy technologies components like solar panel cells, wind turbines bearing, shafts, gears, and electric vehicles battery cathode materials. India’s energy transition hinges on securing a reliable supply of critical minerals like copper and nickel.