How Lithium discovery will make electric vehicles affordable in India

Currently, India is import-dependent for many minerals like lithium, nickel and cobalt.

New Delhi, Feb 10: In a big discovery, the government has found lithium reserves for the first time in the country in Jammu and Kashmir. Lithium is a non-ferrous metal and is one of the prime components in EV batteries.

"Geological Survey of India has for the first time established 5.9 million tonnes of inferred resources (G3) of lithium in Salal-Haimana area of Reasi District of Jammu & Kashmir (UT)," tweeted Ministry of mines.

"Out of these 51 mineral blocks, 5 blocks pertain to gold and other blocks pertain to commodities like potash, molybdenum, base metals, etc. spread across 11 states of Jammu and Kashmir (UT), Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, and Telangana," it said.

Currently, India is import-dependent for many minerals like lithium, nickel and cobalt.

Lithium, the catalyst to EV boom?

Lithium is a non-ferrous metal known as "white gold", and is one of the key components in EV batteries. Though India is rich in minerals, it has limited reserves of lithium.

To meet the demand of Lithium for emerging technologies, the government was taking several proactive measures to secure minerals, including lithium, from Australia and Argentina.

Recently, lithium deposits were found in states like Karnataka, Andhra Pradesh, and Rajasthan.

The discovery of lithium is significant as India is investing more in the electric vehicle market and aims to become a leading producer of EVs. As demand for lithium-ion batteries continues to rise, there is potential for the exploration and development of lithium deposits in India.

The government has also taken initiatives to encourage the exploration and development of lithium resources, including offering incentives for companies to invest in the lithium industry.

The Modi government has unveiled incentives of at least $3.4 billion to speed up its lagging adoption of EVs as PM Modi vows to reach net zero by 2070.

The government aims to make the costliest component - batteries -manufacture locally to make the product more affordable for the mass market and set the country up as a potential exporter, tapping the resource.

Industrialists like Mukesh Ambani, whose Reliance Industries Ltd. are building an EV battery facility in push into clean energy.

Also, scooter-maker Ola Electric Mobility Pvt. and bullion refiner Rajesh Exports Ltd are expected to get incentives under a $2.3 billion program to support advanced battery cell development.

Despite serious efforts, India still faces challenges in developing its domestic lithium industry. It needs significant investments and improvements in infrastructure will be necessary to fully realize its potential.