June 2023
Authors and Acknowledgements
Authors
Contacts
For more information, contact Joseph Teja
NITI Aayog:Sudhendu J Sinha, Adviser, NITI AayogJoseph Teja, NITI AayogGautam Sharma, NITI AayogNidhi Jha, NITI Aayog
Acknowledgments
The authors would like to acknowledge the team at ADB led byMr. Jiwan Acharya (Principal Energy Specialist) and Mr. KeerthiKumar Challa (Project Officer Energy) for their contributionsand guidance in shaping this report.
Ernst & Young LLP:Somesh Kumar, Partner & Leader (Power & Utilities)GPS, EY IndiaShuboday Ganta, Director, EY IndiaAnkit Idwani, Senior Associate, EY India
Suggested Citation
NITI Aayog, From Mine to Market: Critical Minerals SupplyChain for Domestic Value Addition in Battery Manufacturing,June 2023.
This report was produced as a part of TA 6726-IND: Promoting CleanEnergy Usage Through Enhanced Adoption of Electric Vehicles andGrid Integration of Battery Storage System, co-financed on a grantbasis by the Asian Clean Energy Fund, established by Government ofJapan, under the Clean Energy Financing Partnership Facility andadministered by ADB.
Foreword
Advanced chemistry cell (ACC) batteries are the bed rock of future low carbon transportation and energy systems. India’s domestic ACC batterymanufacturing industry is fast emerging with support from government initiatives on both demand and supply side. Critical minerals supply chain,especially lithium, cobalt, nickel and spherical graphite, refining for active materials are vital to achieve domestic value addition in the manufacturing ofACC battery electrodes. By localizing the mining and refining value chain of critical minerals, India can reduce its reliance on imports and help buildresilience in global supply chains.
NITI Aayog has been studying the mine to market landscape of critical minerals and active materials used in the production of lithium-ion batteries (LIB).As global demand for lithium-ion batteries continues to rise, India has a unique opportunity to support resilient supply chains of critical minerals,establish self-reliance and reduce imports. Some developed countries have combined demand side incentives for consumers and businesses to purchaseclean vehicles with programs to expand domestic manufacturing and sourcing of critical minerals and battery components. In these countries, thebattery’s critical minerals must meet certain requirements for sourcing or processing domestically for eligibility of EV demand side incentives.
India has become the newest partner in the US led Mineral Security Partnership (MSP) to bolster critical mineral supply chains. The partnership aims toaccelerate the development of diverse and sustainable critical mineral supply chains. Apart from this, G2G dialogues are advancing with friendlycountries for joint exploration and mining. Government of India has set up KABIL to ensure a consistent supply of critical and strategic minerals throughG2G negotiations and acquiring mining assets abroad.
This report provides useful information and insights to policymakers, industry, investors, partners and stakeholders in the ACC battery and criticalminerals ecosystem. The report may serve as a catalyst for transformative change and drive India's sustainable development agenda forward. We areconfident that it will lay a foundation for informed decision-making and enable stakeholders to capitalize on the immense opportunities presented by thelocalization of the ACC battery value chain in India.
Mr. Sudhendu J SinhaAdviser (Infrastructure Connectivity – Transport and Electric Mobility)NITI Aayog
A thriving domestic lithium-ion battery (LIB) manufacturing industry will need resilient supply chains of critical minerals and raw materials, such as lithium (Li),nickel (Ni), cobalt (Co) and spherical graphite to manufacture key LIB components and boost domestic value addition.
Executive Summary
The first two chapters in the report provide in-depth analysis of the bill of materials for manufacturing LIBs, demand outlook for critical minerals and rawmaterials essential for supporting domestic value addition. A status quo analysis of the current landscape of critical mineral reserves, production, refiningcapacity, trade statistics and market participants is drawn from the Indian Minerals and trade statistics published by relevant authorities.
In subsequent chapters, the report provides an international perspective of critical minerals processing / refining technologies for production of battery graderaw materials and chemical precursors (viz. Li2CO3, LiOH, NiSO4, CoSO4 and Spherical Graphite) that are critical for domestic value addition. The bill ofancillary chemicals, energy and emissions footprint typically involved in the domestic production of these critical minerals is analyzed. The report alsoprovides techno-economics of critical minerals extraction, global reserves and capital projects in pipeline for critical mineral commodities.
In the final chapter,
