The energy transition in India is critical for meeting its climate goals, particularly its commitments under the Paris Agreement. A shift to renewable energy could decarbonize the power sector by 90%, underscoring its centrality to meaningful climate action. In line with its climate commitments, India has pledged to achieve 50% of its installed power capacity from non-fossil sources and reduce the emissions intensity of its gross domestic product (GDP) by 45% by 2030, compared to 2005 levels. In under a decade, India's installed renewable energy (RE) capacity has surged by over 400%, achieving targets ahead of schedule. This remarkable growth has been fueled by technological advancements, favourable government policies, and robust private sector competition, which have collectively driven down the costs of RE, making it more affordable than traditional coal power.

However, a shift away from coal does not coincide with a shift away from extractives—'clean' renewable technology requires a more complex blend of minerals to enable the exploitation of nature's forces to produce energy. These are referred to as energy critical elements (ECEs) and are essential for manufacturing technologies like wind turbines, solar panels, and electric vehicle batteries, making it imperative to adopt ethical and sustainable mining practices in regions rich in these resources. Given these minerals are more diffuse in nature and harder to extract and process, integrating circular economy principles, such as recycling ECEs and fostering research on viable alternatives, can further strengthen a resilient and sustainable green transition. This article examines the reliance of renewable energy technologies on the extraction and processing of ECEs and emphasizes the importance of ensuring that the energy transition is truly fair and equitable for all stakeholders impacted along the ECE value chain.

What Are Energy Critical Elements and How Are They Used in Clean Technologies?

ECEs are a group of metals and minerals that are vital for the development and functioning of clean energy technologies. These elements are typically characterized by their unique physical and chemical properties, such as high conductivity, magnetism, or catalytic activity, which make them indispensable for advanced energy applications. However, they are often limited in supply due to geological scarcity, geopolitical factors, or extraction challenges, making them 'critical' for energy transitions.

Among the most notable ECEs are rare earth elements (REEs) like neodymium, dysprosium, and praseodymium, which are essential for manufacturing powerful magnets used in wind turbines and electric vehicle (EV) motors. Lithium, another critical element, has become synonymous with the energy storage revolution. Found in lithium–ion batteries, it is a cornerstone of EVs, renewable energy storage, and portable electronics. Similarly, cobalt and nickel are integral to enhancing the energy density and efficiency of these batteries, making them crucial for decarbonizing transport and stabilizing grids reliant on intermittent solar and wind power.

Other elements like indium, gallium, and tellurium have enabled advancements in thin-film solar panels, while platinum and palladium, known as platinum group metals (PGMs), play a central role in hydrogen fuel cells and electrolyzers. Copper, a less exotic but equally important element, serves as the backbone of renewable energy systems and EVs due to its exceptional conductivity, enabling efficient transmission of electricity.

Wind turbines rely on rare earth magnets for their lightweight and efficient generators, while thin-film photovoltaic cells depend on indium and tellurium for harnessing solar power. Lithium–ion batteries, powered by lithium, cobalt, nickel, and graphite, store energy from renewable sources and drive EVs forward. Meanwhile, hydrogen fuel cells, equipped with platinum catalysts, promise to power industries and transport with zero emissions. Advanced semiconductors made from gallium and silicon carbide are critical for the development of smart grids, ensuring seamless integration of renewable energy into the power system.

India's Energy Critical Elements' Supply Chain

India's journey in the extraction and production of ECEs has been guided by its growing ambitions in renewable energy and clean technologies. While the country has rich mineral resources, its role in the global ECE value chain remains limited, and there is significant untapped potential to become a key player in this critical sector.

India's exploration of minerals that are now classified as ECEs began in the mid-20th century, primarily with the extraction of REEs. These elements were initially mined as by-products of monazite sands found along the coastal regions of Kerala, Tamil Nadu, and Odisha. Monazite, rich in thorium and REEs, was primarily processed for thorium production during the era when India was pursuing nuclear energy as part of its energy security strategy.

The Indian Rare Earths Limited (IREL), a government-owned entity established in 1948, became the primary player in the extraction and processing of rare earths. For decades, India exported raw monazite and basic rare earth compounds, focusing on mining rather than value-added processing or manufacturing. By the 1990s, global competition, primarily from China, which offered lower costs and developed advanced processing capabilities, caused India's rare earth production to stagnate.

Today, India recognizes the strategic importance of ECEs for its clean energy and technological aspirations. ECEs such as lithium, cobalt, nickel, and REEs are essential for renewable energy technologies, including wind turbines, solar panels, and batteries for EVs. However, India remains a net importer of most of these critical elements, with limited domestic production and processing capacity.

India possesses significant reserves of rare earth-containing monazite sands, estimated at around 12 million metric tonnes, primarily in coastal states like Odisha, Kerala, and Tamil Nadu. Despite this potential, India's rare earth production accounts for 1% of global output even though it has 6% of the global reserve. The country focuses mainly on basic rare earth compounds and lags in advanced processing and magnet production. IREL remains the primary producer, with limited private sector participation due to stringent regulations and lack of infrastructure.

Lithium, a critical component of clean energy technologies, is sourced mainly from two types of deposits: brine pools and hard rock mines. South America's Lithium Triangle, spanning Argentina, Bolivia, and Chile, is home to some of the world's largest brine reserves. Here, lithium is extracted by evaporating brine water from salt flats, a process that requires vast amounts of water, often in arid regions, raising concerns about water scarcity and its impact on local communities and ecosystems. In contrast, Australia, the largest producer of lithium, primarily extracts it from hard rock mines, which have a different set of environmental and logistical challenges.

Cobalt, critical for battery manufacturing, is heavily sourced from the Democratic Republic of Congo, which supplies over 70% of the world's cobalt. While the Democratic Republic of Congo's rich reserves are essential to global clean energy ambitions, cobalt mining is fraught with issues such as unsafe working conditions, child labour, and corruption. These challenges have led to calls for greater transparency and the adoption of ethical sourcing practices in the supply chain.

India currently has negligible domestic production of lithium and cobalt, and to reduce reliance on imports, the country has recently taken steps to explore lithium reserves in Jammu and Kashmir, where a deposit of 5.9 million metric tonnes was identified in 2023. However, these resources are still in the early stages of exploration and development. For cobalt, India remains dependent on imports, primarily from the Democratic Republic of Congo.

Nickel, another key element in battery production, is extracted in countries like Indonesia, the Philippines, and Russia. While nickel mining plays a crucial role in the energy transition, it poses significant environmental risks, including deforestation and contamination of water bodies due to tailings disposal. Efforts are underway to adopt more sustainable mining practices, but the industry faces an uphill battle in balancing demand with environmental and social responsibilities. India has limited domestic production of nickel, with most of its requirements met through imports. Nickel reserves in Odisha and Jharkhand remain underexplored, representing an opportunity for India to enhance its
self-reliance.

Platinum group metals (PGMs), including platinum and palladium, are sourced primarily from South Africa and Russia. These metals are essential for hydrogen fuel cells and catalytic converters, making them crucial for decarbonizing transportation and industry. However, the extraction of PGMs often involves deep mining operations with high-energy consumption and associated greenhouse gas (GHG) emissions.

Other ECEs, like indium, gallium, and tellurium, are typically by-products of mining for more common metals such as zinc, aluminium, and copper. For instance, indium is extracted as a by-product of zinc refining, with major production hubs in China, South Korea, and Canada. This dependency on the extraction of base metals adds another layer of complexity to securing a stable supply of these critical elements.

Conclusion

The sourcing of ECEs is a complex and often controversial process, deeply intertwined with geology, geopolitics, and environmental challenges. ECEs are not evenly distributed, and their extraction is concentrated in a handful of countries, making supply chains vulnerable to market fluctuations and geopolitical tensions. The sourcing of these elements underscores a paradox at the heart of the clean energy transition. While they are essential for building a sustainable future, their extraction and processing often come with significant environmental and social costs. As demand for ECEs grows, driven by the global push toward renewable energy, electric vehicles, and energy storage, it becomes increasingly important to develop sustainable mining practices, invest in recycling technologies, and foster international collaboration to address the ethical and environmental challenges associated with their production.

To address its dependence on imports, India has launched initiatives such as the National Mineral Policy (2019) and the Critical Minerals Strategy. These policies aim to promote the exploration, sustainable mining, and processing of ECEs while encouraging private sector participation. Challenges such as lack of advanced processing technologies, environmental concerns, and regulatory hurdles persist.

India has also begun focusing on recycling and the circular economy for ECEs. Efforts to recover materials like lithium and cobalt from spent batteries are gaining momentum, with companies like Tata Chemicals and government initiatives leading pilot projects. However, the recycling sector is still in its infancy, with limited infrastructure and technical expertise.

What Are the Impacts of ECEs Extraction and Processing?

The extraction and processing of ECEs, while crucial for advancing clean energy technologies, often come at a significant environmental and social cost. The methods used to mine and refine these elements frequently result in ecological destruction, pollution, and harm to local communities, creating a paradox in the quest for a sustainable future.

The mining of REEs, for instance, often involves open-pit mining and extensive chemical processing. These operations generate enormous quantities of toxic waste, including radioactive by-products such as thorium and uranium, which can contaminate soil, water, and air. In regions like Inner Mongolia in China, where a significant portion of global REE extraction takes place, waste tailings have created hazardous 'toxic lakes', rendering nearby land infertile and water sources unsafe. For communities living near these mining sites, the environmental degradation is compounded by health issues such as respiratory problems, cancer risks, and reduced agricultural productivity.

Similarly, lithium extraction, especially from brine deposits in South America's 'Lithium Triangle', has raised alarms over water scarcity. Extracting lithium from salt flats requires vast amounts of water for brine evaporation, in some cases depleting local aquifers. In arid regions like Salar de Atacama in Chile, this process has disrupted the delicate balance of ecosystems and reduced water availability for Indigenous communities and farmers. Livelihoods dependent on traditional farming and herding practices have been particularly affected, exacerbating social inequalities.

Cobalt mining, predominantly concentrated in the Democratic Republic of Congo, highlights another layer of challenges. Much of the cobalt extracted in the Democratic Republic of Congo comes from artisanal and small-scale mining, often conducted under hazardous conditions. Informal miners, including children, face dangerous work environments with little to no safety measures, risking exposure to toxic substances and life-threatening accidents. Moreover, the environmental impacts include deforestation, soil erosion, and water pollution caused by tailings and chemical runoffs, which affect both biodiversity and local water supplies.

Nickel extraction, particularly in countries like Indonesia and the Philippines, poses similar threats. The disposal of tailings from nickel mines into rivers or coastal waters, a practice known as 'deep-sea tailings placement', leads to the destruction of marine ecosystems and contamination of fish stocks, which many coastal communities depend on for food and income. On land, deforestation caused by mining activities disrupts habitats and accelerates climate change, affecting both wildlife and indigenous populations.

The extraction of platinum group metals, largely sourced from deep mines in South Africa and Russia, involves energy-intensive processes that produce high levels of GHG emissions. In South Africa, mining operations also consume vast amounts of water, exacerbating water stress in already arid regions. Communities near mining sites often face displacement, poor living conditions, and limited access to clean water and sanitation.

Across the board, the social impacts of ECE extraction are deeply intertwined with environmental harm. Many mining operations are located in economically vulnerable regions where local communities have limited political or legal means to advocate for their rights. Land disputes, forced evictions, and inadequate compensation for resource exploitation are common, leaving communities disenfranchized. Moreover, the influx of mining activities can disrupt traditional ways of life, introduce social tensions, and lead to long-term economic dependencies that are difficult to break.

The processing of ECEs adds another layer of environmental damage. Refining rare earth elements, for example, requires the use of acids and solvents, resulting in chemical waste that can leach into groundwater and rivers. In countries like China, which dominates global REE processing, lax environmental regulations have compounded these problems, creating toxic legacies that will take decades to address.

As the global demand for ECEs grows, driven by the clean energy transition, addressing these environmental and social harms is imperative. Solutions such as adopting stricter environmental regulations, ensuring ethical supply chain practices, investing in sustainable mining technologies, and scaling up recycling and reuse efforts are essential to mitigate these impacts. Only by balancing the need for ECEs with responsible practices can the promise of a green future truly benefit both people and the planet.

Web Resources

https://link.springer.com/article/10.1007/s10311-022-01532-8

https://powermin.gov.in/en/content/500gw-nonfossil-fuel-target

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1987752#:~:text=As%20per%20the%20third%20national,in%20the%20Lok%20Sabha%20today.&text=by%20PIB%20Delhi-,As%20a%20party%20to%20the%20United%20Nations%20Framework%20Convention%20on,based%20energy%20resources%20by%202030

https://doi.org/10.1016/j.esd.2024.101613

https://pib.gov.in/newsite/PrintRelease.aspx?relid=112033#:~:text=Deposits%20of%20Rare%20Earths,administrative%20control%20of%20the%20Dept

https://www.thehindu.com/business/industry-urges-govt-to-establish-india-rare-earths-mission-to-reduce-reliance-on-china/article66187382.ece

https://www.csis.org/analysis/south-americas-lithium-triangle-opportunities-biden-administration#:~:text=Latin%20America%20is%20the%20region,and%20more%20challenging%20geographic%20conditions

https://www.weforum.org/stories/2023/01/chart-countries-produce-lithium-world/#:~:text=Australia%20alone%20produces%2052%25%20of,lithium%20refining%20capacity%20for%20batteries

https://www.weforum.org/stories/2023/01/chart-countries-produce-lithium-world/#:~:text=Australia%20alone%20produces%2052%25%20of,lithium%20refining%20capacity%20for%20batteries.

https://www.orfonline.org/expert-speak/implications-of-lithium-reserves-in-jammu-and-kashmir#:~:text=In%20February%202023%2C%20the%20Geological,largest%20source%20of%20lithium%20globally.

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1988669#:~:text=The%20National%20Mineral%20Policy%2C%202019,for%20obtaining%20clearances%20for%20mining.

https://mines.gov.in/admin/download/649d4212cceb01688027666.pdf

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1988669#:~:text=The%20National%20Mineral%20Policy%2C%202019,for%20obtaining%20clearances%20for%20mining.

https://mines.gov.in/admin/download/649d4212cceb01688027666.pdf

https://www.sciencedirect.com/science/article/pii/S0048969722044096#:~:text=Deep%2Dsea%20tailings%20placement%20(DSTP,and%20the%20deep%2Dsea%20bed #