The race for critical materials and how India can get ahead

Closed-loop Advantage

Additionally, its recyclability—a lifecycle of nearly 50 years, according to the International Copper Association (ICA)—ductility-- its ability to be bent and shaped into wires and sheets-- and reduced maintenance costs has only added to its allure of the metal. Hence, every year of its use, reduces the environmental impact with shorter lifespans. According to a NITI Aayog report on ACC battery reuse and recycling, recycled lithium-ion batteries can recover 95 percent of valuable metals like lithium, copper, and cobalt, reducing the need for virgin materials imports.

Additionally 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.

Nickel: Powering The Battery Revolution

Nickel is another critical component of India’s green energy transition, particularly in the production of lithium-ion batteries of EVs 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.

The growth of renewable energy, such as intermittent solar and wind energy for power generation worldwide too have boosted the demand for 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 Matters For Nickel 

To alleviate some of this pressure, 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, to meet the future demands.

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.

Short-term Strategy

In 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. Additionally 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.

Simultaneously, India needs to ramp up its participation in global supply chains and international collaboration, such as with the International Seabed Authority (ISA), to leverage seabed mining in the Central Indian Ocean Basin (CIOB), where it holds rights to polymetallic nodules containing critical minerals.

Medium-term Strategy 

One of the most pressing medium-term challenges for India is scaling up its domestic processing and refining infrastructure. Currently, much of the copper and nickel used in the country is imported as ores, concentrates, alloys, waste and scrap. To reduce this dependency, India must invest in setting up large-scale processing plants, ensuring that both domestically sourced and imported ores are refined within the country.

Recycling also presents a significant opportunity to mitigate supply risks. By strengthening recycling capabilities, especially for copper from old electrical grids and nickel from spent batteries, India can reduce its reliance on newly mined materials, while minimizing environmental impact.

In the long term, 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.

(Souvick Bhattarcharya is Associate Director and Senior Fellow, TERI).

Views are personal and do not represent the stand of this publication.