India's EV, clean energy sectors need mineral policies to address supply chain issues: Economic Survey

To address issues caused by an uneven distribution of rare earth metals, most commonly used in renewable energy systems and electric vehicles (EV), the Economic Survey said that India needs a carefully crafted multi-dimensional mineral policy.

The mineral policy needs to focus on reducing the country's dependence on global supply chains, evaluating existing reserves of nickel, cobalt, and other rare earth elements, investing in internal research, coming up with innovative technology for mineral exploration, and developing the recycling-reusing-repurposing technology, the Survey said.

The Ministry of Mines has already been working on this in some form via a joint venture called Khanij Bidesh India Ltd (KABIL). KABIL has been tasked with identifying and acquiring overseas mineral assets that are critical and strategic for India.

India's green energy dreams are widely pinned on the automotive industry, especially electric vehicles, with the domestic EV market expected to grow by 49% between 2022 and 2030 and hitting one crore units in annual sales by the end of the period.

The e-mobility industry could create five crore direct and indirect jobs by 2030, but this growth could be impeded by high borrowing costs and dampening global demand in the near term.

The Survey, citing the Long-Term Low Carbon Development Strategy (LT-LEDS) outlined at COP 27, said that along with advancing on its mission to create alternative green fuels and become carbon-neutral, India aspires to maximise the use of electric vehicles.