India has made it into the elite top 10 list in “White Gold” Lithium reserves with the newly found site in J&K up to 5,9 Million tonnes potential!
In a major announcement on Thursday, February 10, the Indian government announced the discovery of 5.9 million tons of lithium in the provinces of Jammu and Kashmir. This marks the first significant deposit of lithium in India, with the only other reserves being a small deposit of 1600 tons found in Karnataka two years ago.
the Geological Survey of India (GSI) has 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, according to a statement from the Ministry of Mines. This marks the first time Lithium deposits of such scale have been found in the country.
In addition to the Lithium deposits, 51 mineral blocks, including gold, have been handed over to the respective state governments. Out of these 51 mineral blocks, 5 blocks pertain to gold and the rest pertain to other commodities such as potash, molybdenum, base metals, etc., and are spread across 11 states in India, including Jammu and Kashmir, Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, and Telangana.
The mineral blocks were prepared based on the work carried out by the GSI from 2018-19 to the present.
Lithium: The New “White Gold”
Lithium, often referred to as ‘white gold,’ is a crucial mineral used in the manufacturing of electric vehicles (EVs) and solar panels. According to data from the USGS, global lithium production reached 105,000 tonnes in 2021, with Australia, Chile, and China accounting for nearly 90% of the total. Despite a concentration of production in a few countries, reserves of lithium are slightly more diversified, and even more so when considering unassessed deposits and those that are not currently considered economically or technologically feasible to extract.
The newfound reserves put India in the fifth spot of the largest lithium reserves globally, just ahead of the United States. Mines Secretary Vivek Bharadwaj stated that the deposit will help India become self-reliant, in line with the “aatma nirbhar” (self-reliant India) slogan promoted by Prime Minister Narendra Modi.
The discovery comes days after the US Secretary of Commerce announced plans for a strategic partnership between the two countries to compete against China in the global manufacturing market. The significant deposit of lithium in India has the potential to make the country a major player in the global lithium market and to fulfill the government’s recent promise of increasing the number of private EVs by 30% by 2030.
A New Era in India’s Manufacturing Industry
The discovery of this large deposit of lithium in India could potentially help the country meet its domestic demand for the metal, which has been increasing in recent years due to the growing popularity of electronic devices and EVs.
Pankaj Sharma, Co-Founder and Director of Log9 Materials, stated that the unavailability of lithium has been one of the reasons why India has been dependent on other countries for lithium-ion batteries and other EV components. The recent discovery of lithium reserves in Jammu and Kashmir has provided a new lease of life and further enables India’s ambition to become self-sufficient in its energy storage needs.
According to recent estimates, nearly 60% of the current lithium mining is dedicated to battery-related applications, with projections suggesting that this figure could reach 95% by the end of the decade. This massive increase in demand is driven by the growing popularity of EVs and the increasing number of countries investing in renewable energy solutions.
Given these projections, the lithium reserves in India have the potential to play a crucial role in meeting the growing demand for the metal. If these reserves can be effectively exploited and utilized, it could potentially position India as a major player in the global lithium market. Moreover, it could have far-reaching implications for the future of the electric vehicle industry and energy storage in India, given that lithium is a key component in the production of batteries for these applications.
Why this is big deal for India?
The fact that most original equipment manufacturers (OEMs) in India utilize Lithium-Iron-Phosphate (LFP) battery cells in their EVs, due to its safety, cost-effectiveness, and longer cycle life, makes the discovery of lithium a major milestone in the country’s push towards EV vehicles. Lithium, along with iron and phosphate, is a key component in the production of battery cells for EVs. While iron and phosphate are abundant, lithium reserves are more limited, with only 25% of the world’s lithium reserves considered economically viable, and these reserves are often located in areas with water scarcity, which limits their production at scale.
This is where the significance of the discovery in India becomes apparent. In comparison to China, which has been aggressively acquiring lithium reserves in its pursuit of becoming a leader in the EV space, this new deposit of lithium in India has suddenly positioned the country ahead of China, with reserves four times larger. This development provides India with a unique opportunity to establish itself as a major player in the global lithium market.
Assuming only 25% of the deposit is economically viable and that it can be produced over a 20-year period, India could potentially produce around 200 million two-wheelers, 60 million three-wheelers, or 2 million cars every year for 20 years. This would provide a major boost to the country’s manufacturing sector and contribute significantly to the government’s goal of increasing the number of private electric cars by 30% before 2030.
The increase in demand for Lithium in India would benefit chemical companies associated with the automotive and energy storage industries, including Tata Chemicals Limited, Epsilon Carbon, Phillips Carbon Black, Neogen Chemicals, and Himadri Specialities. These companies would experience a local increase in demand as production of EVs and battery cells in India increases, which would reduce the country’s current high level of imports.
However, the success of this opportunity ultimately rests on the successful exploitation and generation of Lithium in India. If not properly executed, this discovery could become just another “bogus talk.” The government must take proactive measures to ensure that the necessary infrastructure and policies are in place to fully exploit these reserves and make India a leader in the EV and energy storage industries.
Environmental Concerns in Lithium Mining
India’s EV industry is poised to grow in the coming years, and having a domestic source of lithium could help lower production costs and bring investment and technology from leading EV manufacturers. But it’s not all sunshine and rainbows – the development of the lithium deposit will require major infrastructure investment and there are concerns about potential environmental damage.
The process of mining and refining lithium has been criticized for its environmental impact. Lithium is mostly found in underground reservoirs and often contaminates and cuts off water sources in rural communities. In addition, the production process requires heating the ore at high temperatures, which can only be achieved cost-effectively by burning fossil fuels, leading to the emission of 15 tons of carbon dioxide for every ton of lithium produced.
The government of India will need to take measures to ensure that the development of the deposit is done sustainably and with an environmentally responsible approach. The process of extracting lithium from the ground is complex and requires significant investments in technology and infrastructure.
