Building resilient mineral supply chains for energy security
This issue brief outlines the contours of a sourcing strategy for India to secure access to critical non-fuel minerals for either sectoral or economy-wide requirements, using the case study of the indigenisation of battery energy storage manufacturing to illustrate various facets. Amid a complicated global geopolitical landscape typified by conflict, dwindling multilateralism and rising trade barriers, building robust domestic clean energy supply chains has emerged as a key policy imperative. The indigenisation of these supply chains can help India advance two objectives. First, it can help further its energy transition and thereby reduce dependence on fossil fuel imports. Second, through a focus on domestic clean energy equipment manufacturing, India can also reduce its dependence on global supply chains and further its pursuit of atmanirbharta or self-reliance in both energy and manufacturing. Access to critical minerals, which are inputs in the manufacturing process, is fundamental to building a vibrant indigenous clean energy manufacturing industry.