**Critical Minerals: IEEFA Calls For India Investment**

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Post on Oct 31, 2024

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Critical Minerals: IEEFA Calls for India Investment to Secure Supply Chains

The Institute for Energy Economics and Financial Analysis (IEEFA) is urging India to invest heavily in critical minerals to secure its supply chains and strengthen its position as a global clean energy leader.

As the world transitions to a clean energy future, the demand for critical minerals like lithium, cobalt, nickel, and rare earth elements is skyrocketing. These minerals are essential components in electric vehicle batteries, solar panels, wind turbines, and other clean energy technologies. However, the current supply chain for critical minerals is vulnerable, with China holding a dominant position in production and processing.

India's Growing Need for Critical Minerals:

India's rapidly growing economy and ambitious clean energy targets have created a significant demand for critical minerals. The country aims to achieve net-zero emissions by 2070 and has pledged to generate 50% of its electricity from renewable sources by 2030. This ambitious transition will require a substantial increase in the availability of critical minerals.

IEEFA's Recommendations:

In a new report titled "Critical Minerals: India Must Invest to Secure Its Supply Chains and Strengthen Its Position as a Global Clean Energy Leader," IEEFA highlights the urgent need for India to invest in its domestic critical mineral sector. The report outlines several recommendations, including:

• Developing a comprehensive national strategy for critical minerals, encompassing exploration, extraction, processing, and recycling.
• Investing in research and development to improve the efficiency and sustainability of critical mineral extraction and processing technologies.
• Strengthening partnerships with other countries to secure access to critical mineral resources.
• Promoting responsible mining practices that minimize environmental and social impacts.
• Investing in infrastructure to support the development of a robust critical mineral supply chain.

The Benefits of Domestic Investment:

Investing in India's domestic critical mineral sector will not only secure the country's supply chains but also create significant economic opportunities. It is estimated that the global demand for critical minerals could be worth trillions of dollars by 2030, creating a massive market for India.

A Global Opportunity:

India's investment in critical minerals has the potential to not only benefit the country but also contribute to global efforts to combat climate change. By developing a robust domestic supply chain, India can play a vital role in ensuring the availability of critical minerals for the global clean energy transition.

Conclusion:

The IEEFA report underscores the crucial role that India must play in securing its critical mineral supply chains. With a strategic approach to investment, policy, and collaboration, India can emerge as a global leader in the clean energy transition while creating economic prosperity for its citizens.