India’s critical mineral import landscape remains structurally concentrated across a narrow set of supplier countries, amplifying supply risks even as the country accelerates its clean energy transition, according to an April 2026 briefing note and accompanying analysis by the Institute for Energy Economics and Financial Analysis (IEEFA).
Of the 30 minerals identified as critical by the Indian government, the analysis focuses on cobalt, copper, graphite, lithium and nickel due to their role in renewable energy technologies, batteries and electrification systems. India is currently 100 per cent import dependent for lithium, cobalt and nickel.
Critical minerals are vital for India as they underpin its clean energy transition, industrial growth and technological development. Minerals like lithium, cobalt, nickel, copper and graphite are essential for electric vehicles, batteries, renewable energy and grid infrastructure, making them central to energy security, especially as India targets 500 gigawatt (GW) of non-fossil fuel capacity and 50 per cent energy capacity from renewables by 2030.
They also shape industrial competitiveness, as access to these inputs determines the ability to build domestic manufacturing in sectors such as electronics and EVs. However, global supply is highly concentrated in a few countries, exposing India to risks from export controls, geopolitical tensions and price volatility.
A stable value chain covering sourcing, processing and supply is therefore critical to reduce disruption risks, stabilise prices, support long-term investment and help India capture greater domestic value while ensuring resilience against global shocks.
“Reserves and processing capacity for these minerals remain highly concentrated, while recent trends of export restrictions, resource nationalism, and onshoring or friend-shoring policies are fragmenting global markets that India relied upon. The consequences are price volatility, supply disruptions, and reduced availability, affecting import-dependent economies like India the most,” says Saloni Sachdeva Michael, lead energy specialist, India Clean Energy Transition, South Asia, at IEEFA, and a co-author of the briefing note.
Chile has emerged as India’s largest critical minerals supplier, accounting for 2,800,000 tonnes of imports between FY19 and FY25, largely driven by copper ore shipments.
China, along with Belgium, Germany and Japan, plays a systemically important role by supplying a wide range of mineral compounds across cobalt, copper, graphite, lithium and nickel value chains.
Protectionist and industrial policies adopted by major producing and processing countries, including China, Indonesia, the United States, the European Union and Japan, are increasingly shaping trade flows through export controls, domestic value-addition requirements and strategic supply management.
These trends are fragmenting global markets and exposing India’s vulnerability to concentration risks and supply disruptions, even as demand for critical minerals is expected to more than double by 2030.
India’s cobalt imports, particularly cobalt oxide and hydroxide used in lithium-ion battery cathodes, remain concentrated among a few suppliers. Finland accounted for 59.77 per cent of imports in FY25, followed by Germany and China.
Imports reached 751 tonnes valued at US$10 million in FY25, with a year-on-year volume increase of 30.63 per cent.
Globally, around 70 per cent of cobalt is mined in the Democratic Republic of Congo, while approximately 78.6 per cent of processing occurs in China, highlighting structural concentration risks.
Cobalt demand crossed 200,000 tonnes globally in 2024, with 76 per cent driven by battery applications and electric vehicles accounting for 61 per cent of market growth.
Copper imports, critical for power generation and electrification, show increasing dependence alongside shifting supplier dynamics.
Copper ore and concentrate imports stood at 2,300,000 tonnes valued at $3.8 billion in FY25, with Tanzania accounting for 50.34 per cent, followed by Chile at 23.72 per cent and Indonesia at 7.11 per cent. India’s copper cathode imports were valued at $2.3 billion with volumes of 240,000 tonnes, dominated by Japan at 73.29 per cent. Copper oxide and hydroxide imports totalled 378 tonnes valued at $4 million, with Norway contributing 59.91 per cent.
Global copper demand is projected to double from about 28 million tonnes to 42 million tonnes by 2040, driven by electrification, renewable energy and electric vehicles.
India’s copper demand is projected to reach 8.8 million to 9.8 million tonnes by 2047, with imports already amounting to $14.45 billion in FY25.
Natural graphite imports reached 60,000 tonnes valued at $40 million in FY25, with Mozambique accounting for 31.04 per cent, Madagascar 29.38 per cent and China 17.44 per cent. India still imports over 60 per cent of its graphite requirements, even though it has some domestic production capacity.
Synthetic graphite imports stood at 57,000 tonnes valued at $58 million, with China dominating at 91.26 per cent. China controls around 70 per cent of global natural graphite production and 80 per cent of synthetic graphite supply, as well as 90 per cent of global anode manufacturing capacity. Graphite prices have declined sharply due to oversupply, with prices falling from $2,000-$2,200 per tonne in June 2023 to $1,271 per tonne by October 2025.
Lithium carbonate imports declined to 1,000 tonnes valued at $12 million in FY25, with Ireland accounting for 39.73 per cent, followed by Chile and China. Lithium oxide and hydroxide imports rebounded to 2,000 tonnes valued at $23 million, with Chile accounting for 41.53 per cent and China 38.31 per cent. Prices for lithium compounds have fallen significantly due to oversupply and weaker demand, with import values dropping even when volumes remained stable.
Lithium is central to India’s energy transition as it powers lithium-ion batteries used in electric vehicles, grid-scale storage systems and renewable energy integration. As solar and wind capacity expand, battery storage becomes essential to manage intermittency, making lithium critical for reliable and flexible power systems.
The energy sector accounts for over 90 per cent of lithium-ion battery demand, directly linking lithium availability to the pace of electric mobility and storage deployment.
However, India is entirely import-dependent for lithium, with supplies concentrated among a limited set of countries and subject to price volatility and global market shifts. This dependence makes supply security a key concern, as any disruption could delay EV adoption, battery manufacturing and renewable energy expansion.
To address this, India is focusing on diversifying import sources, investing in overseas assets and building domestic capabilities in processing, recycling and battery manufacturing to strengthen supply chain resilience.
Nickel oxide and hydroxide imports totalled 3,700 tonnes valued at $18 million in FY25, with Australia accounting for 64.69 per cent, followed by Indonesia and the Philippines.
Nickel sulphate imports stood at 2,000 tonnes valued at $8 million, dominated by Belgium with a 65.27 per cent share.
Global nickel markets have been shaped by geopolitical disruptions, including the Russia-Ukraine conflict, and rising Indonesian supply, which has pushed prices lower since 2024.
India is pursuing diversification through diplomacy, trade agreements and international cooperation, building partnerships with countries such as Australia and Japan while expanding ties with the United States, United Kingdom, European Union, South Africa, Zambia and Argentina.
Exploratory engagements are also underway with Chile, the Democratic Republic of Congo, Mongolia, Morocco, Mozambique and Saudi Arabia.
“The countries India trades with are resource holders, refiners, and technology leaders. Building resilient supply chains, therefore, will require long-term, structured partnerships that move beyond government-to-government agreements and into deep industry collaboration, joint exploration, scaled research and development, technology transfer, and recycling,” says Kaira Rakheja, energy analyst, South Asia, at IEEFA, and a co-author of the briefing note.
The analysis concludes that while India’s import data reflects a clear intent to diversify supply sources, achieving resilience will require deeper industry-level collaboration, alongside investments in domestic capabilities, recycling and technology transfer to reduce long-term dependence on concentrated global supply chains.