The Centre has announced that for the first time in the country, 5.9 million tonnes of lithium reserves have been discovered, during exploration by the Geological Survey of India (GSI) in the Jammu and Kashmir district of Reasi.
“The Geological Survey of India established Lithium inferred resources (G3) of 5.9 million tonnes for the first time in the Salal-Haimana area of the Reasi district of Jammu and Kashmir,” the Ministry of Mines said. It further said that 51 mineral blocks including Lithium and Gold were handed over to respective state governments.
One of the most important components in EV batteries is lithium, a nonferrous metal. According to Reuters, India has recently been looking to strengthen its supply of key minerals, including lithium, which will be critical in furthering its electric vehicle plans. The discovery of lithium reserves in Jammu and Kashmir is significant in this regard.
Why discovery of lithium in India a big deal?
Lithium is a critical component of electric vehicle (EV) batteries. As the world shifts away from gasoline and diesel vehicles and towards electric vehicles, the demand for lithium is rapidly increasing. Lithium is used not only in EVs, but also in laptop and mobile phone batteries. It has also been used in the glass and ceramics industries. Indeed, lithium has been dubbed “white gold” due to its widespread use in modern-day necessities.
Already, the world’s lithium supply is struggling to keep up with demand. According to an International Energy Agency report, the world could face a lithium shortage by 2025.
The fact that lithium resources are concentrated in a few places is another factor to consider when it comes to lithium supply. The salt flats of Argentina, Bolivia, and Chile contain roughly half of the world’s lithium deposits. Australia has approximately 2.7 million tonnes of lithium resources.
With limited supply and rising prices, lithium is a key commodity in today’s world – one that could “soon be more important than oil and gas,” as European Commission
President Ursula von der Leyen said.
Lithium and India
India currently imports minerals such as lithium, nickel, and cobalt to meet its demand. As the world attempts to wean itself off its reliance on China for critical battery materials, India is taking steps to position itself as an alternative in the electric vehicle supply chain.
However, according to a recent report, India only has a fraction of the raw materials required to meet domestic demand for lithium-ion batteries. The discovery of 5.9 million tonnes of lithium inferred resources (G3) in Jammu and Kashmir is thus expected to give a significant boost to the government’s plans to expand into the EV market.
