India may not be a dominant player in the global critical mineral supply chain, but its exports are beginning to carve a niche in developed markets such as the European Union, the United States, and Japan. According to a recent analysis, India ranked 27th globally in terms of critical mineral exports in 2023, but it successfully exported $1.3 billion worth of critical minerals and related products during the year.

Strong Demand from Developed Markets

Out of the total exports, 37 percent were directed to the EU, US, and Japan, indicating a strong preference from these technologically advanced and battery-reliant economies for Indian materials. This is especially notable as China and Indonesia ranked just behind the top three importers of Indian critical mineral products, highlighting the broad market appeal of India’s raw and semi-processed mineral exports.

India's Export Profile: Raw Over Refined

In stark contrast to China’s exports, which are heavily dominated by finished products (nearly 80 percent), India’s mineral trade is still largely raw material-focused. In 2023, over three-fourths of India’s exports were in the form of raw materials, with battery materials alone accounting for nearly $595 million, or almost half the total export value. These include critical components such as lithium and cobalt, which are essential for battery manufacturing, particularly for electric vehicles (EVs), consumer electronics, and renewable energy storage.

The remaining exports consisted of raw and processed minerals worth $349 million, placing India ninth globally for raw materials, thirteenth for processed minerals, and twenty-first in battery materials.

Who’s Buying India’s Minerals?

A detailed country-wise analysis reveals that Japan and Indonesia accounted for nearly 40 percent of India's raw material exports, followed by Qatar and Saudi Arabia with a combined 23 percent share, and Bahrain with 7.4 percent. Meanwhile, the US and EU dominated India’s processed mineral imports, taking in a combined 97 percent of battery materials.

This demand from the US and Europe is particularly significant in light of recent geopolitical shifts and policy moves. In early April, US President Donald Trump signed an executive order aimed at reducing America’s dependency on China for critical minerals — a decision that aligns well with India’s emerging role as an alternative supplier of essential inputs for clean energy and digital technologies.

India vs China: Scale and Specialisation

Though India has made inroads into developed economies, it still lags far behind China in terms of both volume and value. In 2023, China exported $131 billion worth of critical minerals and related products, nearly 100 times India’s total. But the comparison is not just about scale. China controls over 60 percent of processed minerals exports globally, and over 25 percent of finished products, including battery packs, EVs, and solar equipment.

India, on the other hand, is at an early stage of the value chain, predominantly exporting raw materials rather than finished or value-added products. However, this gives India room for growth and opportunity to invest in downstream processing capabilities, enabling it to climb up the supply chain.

The Growing Importance of Lithium and Cobalt

Materials such as lithium and cobalt are in high demand globally due to their indispensable role in batteries used across a wide spectrum of applications. From powering smartphones and laptops to running EVs and grid-scale energy storage systems, these minerals are essential for the green energy transition.

India’s current rank of ninth in raw materials export and thirteenth in processed minerals reflects a narrow but growing footprint. With global focus shifting toward clean energy technologies and digital transformation, the demand for these materials is only expected to grow exponentially.

Strategic Opportunity for India

While India may not currently play a critical role in the global supply chain, its ability to meet niche demands from developed countries, especially in the battery materials segment, positions it as a reliable and politically neutral trade partner. In the context of Western economies trying to diversify away from Chinese dependency, India could evolve into a preferred partner, especially if it builds capabilities in refining and downstream processing.

Moreover, policy shifts in global powers — particularly those aimed at reshoring or diversifying mineral supply chains — are likely to open new doors for Indian exporters.

Conclusion

India's low rank in the global export of critical minerals does not negate the growing strategic importance of its trade. With significant exports going to developed markets, especially in battery materials, and China’s dominance being challenged, India has the potential to become a key alternative player in the global mineral supply chain. However, to fully capitalize on this momentum, the country must invest in value addition, domestic processing capacity, and sustainable mining practices.

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