6 days ago
Reduce over-dependence on China for critical minerals
As we steer toward a future shaped by renewable energy and electric mobility, lithium-ion batteries have emerged as the backbone of this transformation. From electric vehicles (EVs) to energy storage systems (ESS), the demand for lithium and other critical minerals is surging exponentially. Yet, even as global momentum accelerates, India finds itself at a juncture where we are deeply dependent on foreign sources, especially from China, to meet our mineral needs.
This import reliance is not just a logistical inconvenience; it is a strategic vulnerability. Renewable energy, by its very nature, should represent independence in a way that is free from fossil fuel geopolitics and volatility. But when a country imports nearly 100% of its lithium and other key mineral requirements, the promise of energy sovereignty begins to waver.
Recognising this urgent challenge, the Government of India has launched the National Critical Mineral Mission which mandates PSUs to enter into public private partnerships with private entities such as ourselves and many other innovative companies to make foreign and domestic investments, acquire technology and prepare itself for the large-scale operations that are to come.
The lithium-ion battery supply chain is inherently complex, requiring a seamless integration of mineral exploration, refining, cell chemistry, and manufacturing. It is not enough to mine lithium; one must also refine it with precision, a capability that India currently lacks at commercial scale. We are also vulnerable to a lack of policy support for battery component manufacturers who can apply new technologies they develop or acquire.
This is precisely where our next move becomes critical. As the US-led 14-nation Mineral Security Partnership aligns to democratise and strengthen the critical minerals supply chain, Altmin is stepping up to acquire a sizeable stake in a commercial scale lithium refinery, the only one operational outside China. The move will give Altmin access to refining technology that would otherwise take years to develop. The Government of India and other research and development (R&D) entities are exploring the exploitation of critical minerals. But despite these efforts, India will miss opportunities of the green energy race to the already established Chinese eco-system; unless India adapts existing technology and fast-tracks its own ecosystem reinforced through government policy.
A quick five-point industry ask, if met, will accelerate India's self-reliance in this sector. Standardisation of original equipment manunfacturer (OEM) specifications is the need of the hour. For consistent and scalable manufacturing of cells, the specifications demanded by OEMs must be standardised based on industry requirements. This will eliminate unnecessary variability and help manufacturers plan optimal production lines. Next in line is stabilisation of kilowatt-hour (kWh) pricing. The current spot prices for cell energy (kWh) are influenced by undervalued and cut-rate pricing practises, especially from China. To counteract this, a mechanism to stabilise the kWh pricing is needed, ensuring fair value for domestic manufacturers. I would like to propose a minimum support price for cells so that there is a baseline economic viability that is ensured for manufacturers, independent of international price fluctuations.
The cost of cell production is directly tied to the input components—anode, cathode, electrolyte, and other battery materials. A component-wise minimum support price framework with a fixed minimum profit margin for component manufacturers will encourage growth in these stages of the value chain. To promote Atmanirbhar Bharat, all cell manufacturers availing the minimum support price regime should achieve at least 60% localisation within the next two years. This localisation should be monitored and audited to ensure compliance in both letter and spirit.
These measures will catalyse domestic manufacturing and protect Indian manufacturers from global market distortions, enabling long-term competitiveness and technological sovereignty.
For these efforts to bear fruit at scale, we must adapt existing technologies, foster global collaborations, and build a nurturing domestic ecosystem that can withstand the rigors of future demand. Only then can we secure not just our energy future—but our strategic autonomy.
This article is authored by Anjani Sri Mourya Sunkavalli, founder and MD, Altmin.
