Modi government to approve ₹1,500cr incentive scheme for critical minerals
What's the story
The Union Cabinet is likely to approve a five-year incentive scheme worth ₹1,500 crore. The scheme aims to promote the recycling of critical minerals such as copper, lithium, nickel, cobalt as well as rare-earth elements. The move is part of India's strategy to strengthen domestic supply chains in its transition toward clean energy.
Energy targets
India's clean energy goals
India, the world's third-largest greenhouse gas emitter, has set ambitious clean energy goals. The country aims to achieve 500GW of non-fossil fuel power capacity by 2030 and net-zero emissions by 2070. Achieving these targets requires a steady supply of critical minerals for solar panels, wind turbines, battery storage systems and electric vehicles (EVs).
Supply chain
Dependence on China for critical minerals
China currently dominates the global supply of critical minerals, producing around 60% of rare-earth magnets and processing nearly 90% of the world's supply. The country sources raw materials from all over the world. This dependence on China has raised concerns for India, which is looking to become self-reliant in critical minerals to meet its clean energy goals.
Industry impact
Proposed incentive scheme
Rare-earth elements and processed minerals are widely used in heavy industries, batteries, robotics, and military equipment. Rare-earth magnets are especially important for manufacturing electronics and semiconductors. The proposed incentive scheme is expected to boost domestic production of these critical minerals.