The Federation of Indian Chambers of Commerce and Industry (FICCI), in partnership with Deloitte, has released a new report outlining the growing importance of critical minerals and rare earth elements in supporting India’s clean energy expansion, industrial growth and economic resilience. The study notes that secure access to minerals such as lithium, nickel, cobalt, graphite, copper and rare earths will be essential as India advances toward major energy and mobility targets.
India plans to build 500 GW of renewable energy capacity, increase electric vehicle adoption to 30 percent by 2030 and achieve net-zero emissions by 2070. Meeting these goals will require large volumes of specialised minerals for batteries, energy storage systems, wind turbines, electronics and defence manufacturing. Demand for these materials is expected to rise sharply by FY30.
At present, India relies heavily on imports. The country depends entirely on overseas sources for lithium, cobalt and nickel, while more than 90 percent of copper and about 60 percent of natural graphite are imported. Heavy rare earth elements are available only in limited quantities, and domestic refining capacity remains constrained. Although India has geological potential across several minerals, mining and processing output has not kept pace with projected demand.
The report notes that economic growth linked to decarbonisation and advanced manufacturing is becoming increasingly mineral-intensive. Lithium, graphite and nickel are seeing rapid global demand growth due to electric mobility and large-scale storage systems. At the same time, mining and refining are concentrated in a small number of countries, increasing exposure to supply disruptions, export controls and price volatility.
For India, the most pressing gap lies in midstream processing. Limited refining of battery-grade chemicals, magnet materials and high-purity rare earth elements leads to dependence on foreign supply chains. Rare earth elements such as neodymium and praseodymium, vital for permanent magnets used in EV motors and wind turbines, are a key example. Despite domestic deposits, separation and magnet manufacturing capacity remains limited.
The report recommends faster exploration, development of local processing hubs, overseas asset partnerships, expanded recycling and strong environmental and social safeguards. With focused action under national initiatives, India can reduce import dependence and strengthen its role in global clean technology supply chains while supporting long-term economic stability.
