India must address import dependence in Cobalt supply to boost security

Time of India

16-06-2025

New Delhi: The border may have cooled, but a more enduring battle brews far from the frontlines—deep inside supply chains and smelting plants. The brief but tense India-Pakistan standoff, where air defence systems were activated and electronic surveillance was ramped up, exposed an uncomfortable truth: India's reliance on imports to meet its demand for Cobalt that powers some of our advanced weapon systems.
From precision missiles to stealth aircraft and smart naval platforms, cobalt is used in bulk. But for now, India imports almost all of it, mostly from China. "Cobalt is not just a metal; it's a
national security
enabler," says Vinayak Singal, Assistant Vice President at Lohum. "India currently imports cobalt from China to manufacture high-performance superalloys used in our defence technologies. This overreliance makes us acutely vulnerable."
The strategic edge beneath the surface
During the recent Indo-Pak conflict, the readiness of Indian forces, especially air and missile defence, was on full display. Behind that hardware lie systems powered by cobalt-rich alloys and magnets. Hypersonic engines, UAVs, radar domes, and submarine propulsion all depend on cobalt for heat resistance, magnetic strength, and durability.
According to the 2024 Cobalt Market Report, global defence-led demand for cobalt is on the rise. For India, aiming to indigenise its platforms, be it LCA Tejas or long-endurance drones, continued cobalt dependence is a major issue.
China's grip on the cobalt supply chain
Nearly 80% of the world's cobalt is refined by China. Add to this its control over 15 of the largest copper-cobalt mines in the Democratic Republic of Congo, and the picture becomes even starker. China has already demonstrated its willingness to weaponise supply chains—tightening exports of gallium and germanium in 2023.
"Given cobalt's use in hypersonic cruise missiles, radar systems, and battlefield communication tools, any disruption in supply could delay critical defence programs and undermine India's national security," says Rajib Maitra, Partner at Deloitte India.
India's strategic push: Building domestic capability
A Vedanta Limited spokesperson acknowledged the urgency of the situation. 'India's 100% cobalt import reliance is a strategic vulnerability. While domestic exploration is essential long-term, immediate gains lie in refining, recycling, and smart sourcing,' the spokesperson said.
Vedanta has committed to scaling up cobalt production from 1ktpa to 6ktpa at its Konkola Copper Mines in Zambia. In parallel, it is building refining capacity under its Vedanta NICO project in India. 'Recycling and recovery are a major opportunity for India,' the spokesperson noted. 'Incentivizing by-product cobalt recovery from tailings offers another pragmatic avenue. Simultaneously, investing in global upstream assets will bolster India's supply security.'
The focus must be on refining
'While it's true that India is fully import dependent for cobalt like some of the other critical minerals, there is one difference,' says Nishant Nishchal, Partner at Kearney. 'Only one part of the value chain is constrained. For cobalt, it's the refining that is concentrated in China. That's where India needs to focus.'
Nishchal adds that while urban mining shows long-term promise, defence-grade cobalt purity levels can only be assured through proper refining infrastructure. 'The choice is clear—India must develop its refining ecosystem,' he says.
The urban mining opportunity and its limits
Recycling, if scaled and streamlined, could be a game-changer in reducing India's cobalt vulnerability. As electric vehicles and battery-based systems grow in volume, so will the availability of end-of-life lithium-ion batteries containing cobalt. With the right mix of technology, policy support, and public-private partnerships, recycling could help India build a domestic source of cobalt. Not only would this lower dependency on imports, but it would also support a circular economy that aligns with India's sustainability and strategic autonomy goals.
India produced 1.75 million tonnes of e-waste in FY24. Lithium-ion batteries make up a growing portion of this, containing recyclable cobalt. But only 43% of this e-waste is processed, and fewer facilities can meet the high-purity requirements needed for defence applications.
Indian startups are testing advanced recycling processes using low-heat, high-recovery methods that isolate cobalt through magnetism and solubility. But in the absence of government incentives, collection infrastructure, and legal mandates, these innovations struggle to scale.
Policy gaps that undermine sovereignty
Given Cobalt's strategic value, India's mining and waste policies must cover cobalt recovery and mine closure plans should include tailings assessment for critical minerals. Public procurement for defence systems should also mandate domestic cobalt sourcing.
India's recent military posturing during the Indo-Pak tensions showed operational strength but true strategic autonomy lies deeper — in resource control. As global conflicts become supply-chain wars, minerals like cobalt are the new oil. "Cobalt is the Achilles' heel of modern defence systems. The sooner we localize its supply, the better prepared we are for future conflicts," says Lohum's Vinayak Singal.
India is making moves through its ₹7,000 crore National Critical Minerals Mission and by directing PSUs like KABIL to scout global mining assets. But to truly de-risk its defence ambitions, India must build refining capacity at home, mandate cobalt recovery across sectors, and strike long-term mineral diplomacy deals.