Can Europe and India deepen ties through critical raw materials cooperation?
Europe and India are rapidly embarking on a clean energy transition with the share of renewables skyrocketing in their respective energy mixes. This heightens concerns about dependence on critical raw materials (CRMs), such as cobalt, nickel and graphite, that are needed for renewable energy technologies, and whose supply chains are largely dominated by singular exporters such as China. It is not the case that Europe and India lack reserves of, for instance, lithium, but there are barriers to extracting them, and even if new mining activities are undertaken, it will take time.
This policy brief reviews how the two parties are juggling with their dependence on China-dominated CRM dependent value chains. Both realise that derisking, diversification and/or decoupling cannot be easily and quickly achieved. While the EU is nervous about being drawn into a wider regional conflict between the United States and China, India’s attempts to deal with the China threat has drawn it into various issue-based strategic partnerships. It makes sense for the two blocs to reframe the discussion on de-risking and instead cooperate on joint investments into Research & Development into alternatives to some CRMs, developing competitive supply chains for new materials and cooperating on the re-use and recycling of existing materials.
