India’s electric vehicle revolution and clean energy ambitions could face a significant roadblock as the country remains heavily dependent on imported critical minerals essential for EV batteries, charging infrastructure, renewable energy systems, and grid expansion.
A new analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) warns that India’s critical mineral supply chain remains highly vulnerable due to concentrated trade linkages, rising geopolitical risks, and growing protectionist policies among major mineral-producing nations.
The findings come at a crucial moment for India’s EV push, as the government aggressively promotes electric mobility, battery manufacturing under PLI schemes, and domestic cell production to reduce oil imports and decarbonise transport.
India’s EV Growth Depends on Minerals It Does Not Control
According to IEEFA’s latest briefing note, India’s critical mineral imports in 2025 and a shift towards supply diversification, India is currently 100% import-dependent for lithium, cobalt, and nickel — three minerals central to lithium-ion battery manufacturing.
These minerals power electric cars, two-wheelers, buses, battery storage systems, and renewable integration technologies.
While EV adoption is accelerating across India, mineral supply security remains a blind spot.
Without stable access to these raw materials, India risks exposing its EV ecosystem to:
- battery price volatility
- manufacturing delays
- supply disruptions
- cost escalation for EV makers
- dependence on foreign processing ecosystems
This is especially concerning as India positions itself as a future EV manufacturing hub under initiatives like Make in India, FAME, and battery localisation programmes.
Chile Emerges as India’s Largest Critical Mineral Supplier
The report shows that Chile has emerged as India’s largest supplier of critical minerals, accounting for approximately 2.8 million tonnes of imports between FY2019 and FY2025, largely driven by copper ore shipments.
Copper is indispensable for India’s electrification journey.
EVs use significantly more copper than internal combustion engine vehicles due to their wiring, motors, battery connections, and charging systems. Copper is also essential for renewable energy infrastructure and grid upgrades.
Meanwhile, China remains systemically important across multiple mineral value chains, including graphite, lithium compounds, cobalt products, and processed nickel inputs.
This presents a strategic dilemma for India.
Even as New Delhi seeks to reduce dependence on Chinese manufacturing ecosystems, much of the global processing capacity for battery minerals remains concentrated in China.
China’s Dominance and it’s Shadow Over India’s EV Supply Chain
China continues to dominate critical mineral refining and intermediate chemical processing.
In graphite — a crucial anode material for EV batteries — China still controls over 91% of India’s synthetic graphite imports in FY2025.
Although Mozambique has overtaken China in natural graphite supply, India’s dependence on Chinese processing remains substantial.
This concentration risk matters because graphite is often overshadowed by lithium in public discussions, despite being equally critical for battery production.
If China tightens export policies or prioritises domestic industries, India’s battery manufacturing ecosystem could face immediate disruptions.
Global Resource Nationalism Is Reshaping Mineral Markets
The report highlights how major economies are adopting aggressive industrial strategies around critical minerals.
Countries including:
- China
- Indonesia
- United States
- European Union
- Japan
are increasingly deploying:
- export controls
- domestic value-addition mandates
- supply restrictions
- strategic stockpiling
- friend-shoring policies
These shifts are fragmenting global supply chains and increasing vulnerability for import-dependent economies like India.
For India’s EV transition, this means mineral access is no longer simply a trade issue—it is now a strategic national security concern.
Saloni Sachdeva Michael, Lead Energy Specialist at IEEFA, noted that global trends such as export restrictions and resource nationalism are making critical minerals less predictable and more expensive.
India Is Diversifying—But Not Fast Enough
The report notes that India is actively pursuing diversification through diplomacy, trade partnerships, and overseas cooperation.
India has established or expanded mineral partnerships with:
- Australia
- Japan
- United States
- European Union
- Argentina
- Zambia
- South Africa
- Chile
- Democratic Republic of Congo
- Mozambique
Australia and Japan currently appear to be India’s most mature partners, with stronger investment linkages, joint ventures, and supply agreements.
However, experts say diversification cannot stop at imports.
India must also accelerate:
1. Domestic exploration and mining
Despite known reserves, India remains slow in commercialising critical mineral assets.
2. Recycling ecosystems
Battery recycling could become India’s hidden strategic advantage.
Recovering lithium, cobalt, nickel, and graphite from end-of-life batteries can reduce import dependence while supporting circular economy goals.
3. Technology transfer and refining capacity
Mining minerals is only one part of the equation. Processing and refining are where much of the value chain—and geopolitical leverage—currently sits.
4. Research and development
Advanced battery chemistries, sodium-ion alternatives, and material substitution could reduce pressure on imported minerals over time.
What This Means for India’s EV Drive
India’s EV journey is often framed around vehicle adoption, charging stations, subsidies, and manufacturing incentives.
But beneath the surface lies a harder truth: India cannot build a truly resilient EV ecosystem without securing mineral sovereignty or at least diversified access.
The country’s clean mobility future now depends not only on policy ambition but on mineral diplomacy, industrial strategy, and circular economy planning.
As India races toward net-zero targets and transport electrification, critical minerals may well become the next major battleground of the energy transition.
Without securing them, India’s EV momentum could slow just when acceleration is most needed.