Ministry of Mines in India made the historic discovery in Jammu and Kashmir of 5.9 million tonnes of lithium reserves. The Ministry of Mines stated that the “Geological Survey of India for the first time established Lithium inferred resources (G3) of 5.9 million tonnes in the Salal-Haimana area of the Reasi district of Jammu and Kashmir” It also stated that 51 mineral blocks, including Lithium and Gold, had been given to the respective states. Based on the work that GSI has done since the 2018–19 field seasons, the blocks were made.
Is lithium paving way to India’s greener future?
BloombergNEF reports that the price of lithium-ion batteries increased for the first time during the EV era last year. Elon Musk complained that the rally in lithium was “insane” and that one of Tesla Inc.’s biggest challenges was the high cost of raw materials.
As Prime Minister Narendra Modi pledges to reach net zero by 2070, the central government has announced incentives worth at least $3.4 billion to speed up its lagging adoption of electric vehicles. The idea is that making batteries, the most expensive component, locally will make the finished product more affordable for the general public and position the nation as a potential exporter that can take advantage of rising global demand.
Billionaires like Mukesh Ambani, whose Reliance Industries Ltd. is building an EV battery facility as part of a larger $76 billion push into clean energy, have shown an interest in the initiatives. Ambani’s is one of three businesses, along with Ola Electric Mobility Pvt. and Rajesh Exports Ltd., a bullion refiner, will get incentives from a $2.3 billion program to help develop advanced battery cells.
The country with the second most people in the world only has a small amount of the raw materials needed to produce lithium-ion batteries on a global scale and meet domestic demand, which Crisil predicts will grow 100 times by 2030.
Demand for lithium, nickel, cobalt, and other metals used in lithium-ion batteries is on the rise as the world moves away from gasoline-fueled combustion engines. However, energy researchers who believe that even half of the estimated 5.9 million tonnes would be a significant abundance of this strategic economic metal are excited about the announcement. This could be significant and transform India’s electric vehicle industry, particularly its lithium-ion battery industry.
According to data from the department of commerce, India currently purchases all lithium and lithium-ion batteries from China, Hong Kong, Indonesia, and Vietnam. From 2018-19 to 2020-21, the country spent more than Rs 26,700 crore on these imports.
