The global energy transition has triggered an intense geopolitical and economic race to secure critical minerals that power clean technologies. Lithium, cobalt, nickel, copper and rare earth elements have become the new oil in a decarbonising world. These minerals form the backbone of electric vehicle batteries, solar panels, wind turbines, semiconductors, hydrogen technologies and grid-scale storage systems. For India, which has committed to achieving net zero emissions by 2070 and 500 GW of renewable capacity by 2030, access to these minerals is no longer just a commodity requirement—it is a national strategic imperative.
Countries that dominate the extraction and processing of these resources will control the future energy economy. At present, China refines nearly 60 per cent of the world’s lithium, 65 per cent of cobalt and over 80 per cent of rare earth elements. India, as one of the world’s fastest-growing clean energy markets, is heavily dependent on imports. The vulnerability of global supply chains, combined with increasing resource nationalism, has made critical minerals central to India’s energy security strategy.
Why India’s energy transition depends on minerals
India’s renewable energy and electric mobility ambitions are deeply mineral-intensive. An electric car demands nearly six times more minerals than a conventional vehicle, while a wind turbine requires significant copper and rare earth metals. Battery storage systems, a key requirement for integrating solar and wind power into the national grid, are dependent on lithium and nickel. Even the nascent green hydrogen sector will need large quantities of nickel-based electrolysers.
The International Energy Agency estimates that global demand for critical minerals for clean energy technologies could increase six-fold by 2040. For India, which plans mass electrification of transport, rapid expansion of rooftop solar and domestic manufacturing under the Production Linked Incentive (PLI) schemes, mineral security will determine economic competitiveness and manufacturing self-reliance.
Government initiatives to secure mineral supply
Recognising this challenge, the Government of India has identified 30 critical minerals essential for economic development, energy transition and national security. The establishment of the National Critical Minerals Mission is a major step in coordinating exploration, acquisition and processing strategies. Khanij Bidesh India Ltd (KABIL), a joint venture of three public sector enterprises, has been mandated to acquire lithium and cobalt assets in countries such as Argentina, Chile and Australia. The recent discovery of 5.9 million tonnes of lithium resources in Jammu and Kashmir has further encouraged domestic exploration efforts.
India is also seeking to secure access through international partnerships. It has joined the US-led Minerals Security Partnership and is negotiating bilateral agreements with resource-rich nations. Alongside this, PLI incentives for advanced battery storage technologies are designed to promote localisation of manufacturing and reduce dependence on imported cells. Recycling is emerging as a parallel pillar of mineral security, with policymakers emphasising the importance of urban mining to recover valuable materials from electronic and battery waste.
The strategic role of energy efficiency
While securing mineral supply is essential to power clean technologies, reducing overall energy demand through efficiency is equally central to India’s strategy. Energy efficiency is widely regarded as the most cost-effective and environmentally sustainable way to manage demand. The International Energy Agency refers to it as the “first fuel” of the energy transition, as every unit of energy saved contributes to energy security and reduces pressure on imports.
India has historically been proactive in this space. The Bureau of Energy Efficiency (BEE), established in 2002, has implemented several transformative initiatives. The Standards and Labelling programme has made energy-efficient appliances mainstream in middle-class households. The Perform, Achieve and Trade (PAT) scheme has encouraged energy-intensive industries to improve efficiency through a market-based mechanism. These efforts have collectively resulted in significant savings in electricity consumption and reduction in greenhouse gas emissions.
Industrial, household and transport efficiency measures
Industry is the largest consumer of energy in India, and efficiency improvements here directly influence economic growth. Under the PAT scheme, sectors such as cement, steel, aluminium and fertilisers have achieved notable reductions in energy intensity. The Energy Conservation Building Code ensures that commercial real estate adopts efficient technologies in lighting, air conditioning and design.
At the household level, the shift from incandescent bulbs to LED lighting under the UJALA programme is often cited as one of the world’s largest energy efficiency success stories. India has distributed over 370 million LED bulbs, saving billions of units of electricity annually. The transport sector is also experiencing a transition, with fuel efficiency norms for vehicles and the promotion of electric mobility aimed at reducing oil consumption and emissions.
Linking critical minerals to energy security
Critical minerals and energy efficiency are interlinked aspects of India’s broader energy transition strategy. As India scales up renewable energy generation, storage and electric mobility, demand for minerals such as lithium, cobalt and nickel will rise exponentially. At the same time, energy efficiency measures will ensure that the pace of demand growth remains manageable, reducing pressure on both the grid and mineral resources.
A balanced approach ensures that minerals are used optimally, technologies become more cost-efficient and the economy remains resilient to global supply shocks. Efficiency also supports the integration of variable renewable energy into the grid by reducing overall consumption and peak demand, which in turn delays the need for large-scale storage deployment—thereby reducing immediate dependence on imported minerals.
The way forward for India
India’s path to sustainable energy security will require simultaneous action on multiple fronts. Domestic exploration must be accelerated through streamlined licensing and environmental clearances. Strategic reserves of key minerals must be built to cushion against global supply shocks. Investments in refining and processing technologies are essential to move up the value chain rather than remaining a raw material importer.
Equally, energy efficiency must be expanded beyond large industries to include small and medium enterprises, commercial buildings and rural sectors. Financing mechanisms, digital tools and behavioural awareness campaigns will be crucial in mainstreaming efficiency. The future energy system must be designed to be not only low-carbon but also resource-efficient.
Conclusion
The twin pillars of critical mineral security and energy efficiency will determine how effectively India navigates the global energy transition. As geopolitical competition for resources intensifies, India’s focus on self-reliance, strategic sourcing and circular economy will shape its ability to lead in clean technologies. At the same time, every megawatt saved through efficiency brings the country closer to energy independence.
India’s vision of becoming a global clean energy hub depends not just on the scale of renewable deployment but on the sustainability of the resources that power it. By building resilient mineral supply chains and treating energy efficiency as a national priority, India is laying the foundation for long-term energy sovereignty and economic leadership in the emerging green economy.
