India’s Green Energy Goals Depend on Copper and Nickel Supply, Recycling Crucial
India's pursuit of carbon neutrality heavily relies on securing key metals like copper and nickel, essential for the renewable energy sector and the electric vehicle (EV) industry. These materials are crucial to reducing reliance on external sources, and recycling is expected to play a major role in establishing a sustainable and reliable supply chain.
Copper, recognized for its importance in electrification, is vital to the infrastructure supporting solar panels, wind turbines, and EVs. For instance, an electric car typically uses around 83 kg of copper, about four times the amount needed for conventional vehicles. Although technological advancements may reduce this figure in the coming years, copper remains essential. Renewable energy systems also use significantly more copper than traditional fossil-fuel energy setups. According to analysts at S&P Global, copper demand is projected to double by 2035, reaching 50 million metric tons annually, with further growth expected by 2050.
The recyclability of copper enhances its value. Studies show that copper can have a lifespan of up to 50 years, and its ability to be reused reduces the need for newly mined material, thereby lowering environmental impacts. In the battery sector, recycling lithium-ion batteries could recover around 95% of valuable metals, such as copper and cobalt, according to a NITI Aayog report. This offers a promising solution to reduce dependence on imported raw materials.
Nickel is another critical metal, particularly for EVs and large-scale energy storage systems that rely on lithium-ion batteries. Its high energy density and resistance to corrosion make nickel indispensable for the green energy transition. However, the rising demand for nickel has strained global supply chains. Recycling is emerging as a key strategy to recover nickel from spent batteries, with recovery processes capturing up to 70% of the metal.
Globally, the depletion of high-grade ores has prompted mining companies to explore lower-grade resources and previously neglected deposits. This shift is expected to increase reliance on secondary sources, such as mine tailings and industrial waste. Indian companies are making efforts to enhance domestic production of critical minerals, reducing dependency on imports.
In the short term, India is focusing on securing mineral assets abroad to ensure a stable supply of essential resources. Companies such as Coal India are exploring opportunities to acquire assets related to lithium, nickel, and cobalt in foreign markets. Domestically, India has auctioned several mineral blocks containing nickel and copper to bolster its supply chain.
For the medium term, India aims to scale up its domestic refining and processing infrastructure. Currently, much of the copper and nickel used in the country is imported, but there is a push to establish local facilities to handle both imported and locally sourced materials. Enhancing recycling capabilities, particularly for copper and nickel, is also a priority to mitigate supply risks and reduce environmental impacts.
In the long run, India's energy transition hinges on securing a steady supply of these critical minerals. By ramping up domestic production and refining, as well as participating in global supply chains, India is positioning itself to lead in manufacturing components for renewable energy technologies, such as solar panels and EV batteries.
