The Significance of Newly Found Lithium Deposits in India

Lithium is a rare element that is essential for the production of electric vehicles (EVs), batteries and energy storage systems. It is also used in various gadgets such as smartphones and laptops. Lithium has so far been mainly found in countries like Chile, Australia and Argentina, which account for more than 80% of the world’s lithium reserves.

India, on the other hand, has been dependent on imports for its lithium needs. According to a report by the Ministry of Commerce and Industry, India imported about 1.2 billion dollars worth of lithium-ion cells and batteries in 2020-21, with China and Hong Kong being the major suppliers. India also imported lithium ores and concentrates from Australia and Argentina.

However, this scenario may change soon as India has recently discovered significant reserves of lithium in its own territory. The Geological Survey of India (GSI) announced that it has found 5.9 million tonnes of lithium resources in the Salal-Haimana area of Reasi district in Jammu and Kashmir. This is the first major discovery of lithium in India, with smaller deposits found earlier in the southern state of Karnataka in 2021.

The discovery could have significant implications for India’s economy and energy sector, as it could reduce its dependence on foreign sources and boost its domestic production of EVs and batteries. India has set a target of increasing the share of EVs in its private vehicle fleet to 30% by 20301, as part of its efforts to reduce carbon emissions and combat climate change. India also aims to become a global hub for EV manufacturing under its Make in India initiative.

According to some estimates, the identified inferred resources in India would form about 6% of the world’s total reserves, which is not a negligible amount. 

However, there are still some challenges and uncertainties involved in exploiting these resources. For one thing, the quality and grade of the lithium ore need to be assessed and verified before it can be used for commercial purposes. For another thing, the extraction and processing of lithium require advanced technology and infrastructure, which may entail high costs and environmental impacts.

Lithium is extracted from hard rocks or underground brine reservoirs using various methods such as mining, leaching, evaporation or electrolysis. These methods consume a lot of water and energy, and release large amounts of carbon dioxide and other pollutants into the atmosphere. They also affect the landscape and biodiversity of the regions where they are carried out. Therefore, it is important to adopt sustainable and efficient practices to minimize the negative effects of lithium extraction.

Another challenge is to develop a competitive and innovative industry that can utilize the lithium resources effectively and add value to them. This would require investment in research and development, skilled manpower, quality standards, market linkages and policy support. India has already taken some steps in this direction by setting up a joint venture company called Khanij Bidesh India Ltd (KABIL) to acquire strategic minerals abroad.  It has also formed a consortium of three public sector units - National Aluminium Company Ltd (NALCO), Hindustan Copper Ltd (HCL) and Mineral Exploration Corporation Ltd (MECL) - to explore and mine lithium domestically.

Moreover, India has been collaborating with other countries such as Australia, Bolivia and Argentina to secure access to lithium supplies and technology32. It has also been engaging with international organizations such as the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) to exchange best practices and learn from global experiences3.

In conclusion, the discovery of lithium deposits in India is a welcome development that could enhance its energy security and economic growth. However, it also poses some challenges that need to be addressed with care and foresight. India should leverage its strengths and opportunities to develop a robust and sustainable lithium industry that can meet its domestic demand as well as contribute to the global transition towards clean energy.