India’s recent discovery of lithium deposits is a major milestone in the country’s pursuit of becoming a major player in the global new-energy market. Lithium, a crucial component in the production of batteries for electric vehicles and renewable energy storage systems, is a highly sought-after mineral in the world today.
The Geological Survey of India (GSI) last week said it has found lithium deposits, a first for India. About 5.9 million tonne (MT) of lithium inferred resources have been established in the Reasi district of the Union territory of Jammu and Kashmir.
Why do we need lithium?
Lithium is an essential element for modern society, as it is used in a variety of important applications, including batteries, energy storage systems, glass and ceramics, and mental health treatment. Lithium-ion batteries, for example, are widely used in electric vehicles, smartphones, laptops, and renewable energy storage systems because of their high energy density, low weight, and long life cycle. Lithium is also used in the production of high-strength glass and ceramics, and as a mood stabilizer in the treatment of bipolar disorder and other mental health conditions. The increasing demand for lithium makes it a crucial element in the modern world.
India has an EV Vision 2030, where the government has targeted 30 percent electric vehicle penetration by 2030. India’s EV ambitions coupled with its ‘self-sufficiency’ approach make it vital to ensure lithium security. A lithium-ion battery pack for a single electric car is estimated to contain about 8 kilograms of lithium. To put that requirement in context with inferred resources, one tonne is 1,000 kg. The Economic Survey this year also highlighted the need for a strategic mineral reserve. In short, lithium is critical from a new-energy security point of view.
What is India doing to source lithium?
India has adopted a two-pronged approach to source lithium, which involves the following steps:
- Domestic Production: The Indian government is encouraging the exploration and production of lithium within the country to reduce its dependence on imports. The Ministry of Mines is working to identify and evaluate the country’s lithium resources, and several Indian companies have already started investing in the sector. The government is also providing support for the development of lithium mining operations, which will help to meet the country’s domestic demand and allow India to become a significant exporter of lithium to the world.
- International Collaboration: India is also forming partnerships with other countries that have significant lithium reserves, such as Australia and Chile, to secure a reliable supply of the metal. The country is exploring joint ventures with these countries to develop their lithium resources and to participate in the global lithium market. India is also seeking to form partnerships with countries with advanced battery production capabilities, such as South Korea and Japan, to develop its domestic battery manufacturing capabilities.
Which countries are the biggest lithium producers currently?
Australia, Chile and China produced 90 percent of the World’s lithium in 2021. In terms of reserves, Chile, Australia and Argentina top the chart, with 9.3 MT, 6.2 MT and 2.7 MT reserves, according to United States Geological Survey data. India’s latest inferred resource of 5.9 MT is significant in the context of the known reserves of the top three countries.
What’s next from India’s latest find?
Details about the accessibility and purity of the inferred resources would be of material importance. If both factors are favourable, the find in addition to catering to India’s new-energy security will also spark a boom in the domestic lithium-based industrial value-chain, including refining and battery manufacturing.
At present, India’s lithium-ion battery market is largely assembly and fragmented with several players including Coslight India, Okaya and Exicom. From mine to batteries, lithium also needs to move through a complex supply chain, with refiners playing a crucial part. US-based Albemarle and Chile-based SQM are industry leaders in lithium and lithium derivatives. A definite find of lithium in India may attract interest from India’s large energy companies, which already have new-energy plans in place.
