In Jammu and Kashmir, 5.9 million tonnes of lithium reserves have been discovered for the first time in India, according to the Mines Ministry’s statement on Thursday.
The Ministry of Mines announced on Thursday that “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 further stated that state governments received 51 mineral parcels, including lithium and gold. Non-ferrous metal lithium is one of the essential elements of EV batteries.
“These 51 mineral blocks, which are distributed throughout 11 states states of Jammu and Kashmir (UT), Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, and Telangana,”
5 blocks related to gold and other blocks related to commodities like potash, molybdenum, base metals, etc ministry stated.
The blocks were made based on the work done by GSI from the field seasons of 2018–19 up until this point.
Lithium, the catalyst to EV boom?
According to BloombergNEF, lithium-ion battery prices increased last year for the first time in the EV era. Elon Musk lamented lithium’s “insane” surge and claimed that one of the major challenges facing Tesla Inc. was the high cost of raw materials.
As Prime Minister Narendra Modi pledges to achieve net zero by 2070, the central government has announced incentives worth at least $3.4 billion to speed up its sluggish adoption of EVs. The theory is that producing the most expensive component—batteries—locally will lower the final price for the mass market and position the nation as a potential exporter, taking advantage of the soaring worldwide demand.
Billionaires like Mukesh Ambani, whose Reliance Industries Ltd. is building an EV battery facility as part of a larger $76 billion push into sustainable energy, are interested in the efforts. Ambani’s is one of three businesses that will receive incentives as part of a $2.3 billion scheme to assist the development of innovative battery cells, along with bullion refiner Rajesh Exports Ltd. and scooter manufacturer Ola Electric Mobility Pvt.
The second-most populous nation in the world lacks a significant portion of the raw materials required to meet domestic demand for lithium-ion batteries, which Crisil predicts will increase 100-fold by 2030, let alone to create on a worldwide scale.
Demand for lithium, nickel, cobalt, and other metals used in lithium-ion batteries is increasing as society shifts away from combustion engines powered by gasoline.
According to Manikaran Power Ltd. director Jasmeet Singh Kalsi, “the entry barriers are pretty substantial.” The company is constructing the first lithium refinery in India and searching abroad for nickel, cobalt, and copper assets. “Most of it has been seized by China.”
India still has a long way to go before catching up, and it also has to contend with rival nations like the US, which is pushing to increase local battery production in an effort to weaken China’s market dominance.
