. 14/10/2024 6:40 PM
Lithium, a soft, silvery-white non-ferrous metal, is a crucial component in rechargeable batteries for mobile devices, laptops, digital cameras, and electric vehicles (EVs). It is also used in some non-rechargeable batteries found in heart pacemakers, toys, and clocks.
For the first time in India’s history, the Geological Survey of India (GSI) established lithium inferred resources of 5.9 million tonnes in Jammu and Kashmir’s Reasi district. Following this, the GSI identified another significant reserve in Degana, Nagaur district, Rajasthan. These reserves are believed to be much larger and could potentially meet 80% of the country's lithium demand.
Importance of Lithium Access
India's electric vehicle market, valued at $383.5 million in 2021, is projected to expand to $152.21 billion by 2030. In 2019-2020, India imported 450 million units of lithium batteries worth ₹6,600 crore. As the global economy shifts toward low-carbon technologies and advanced technologies like AI and 5G, control over lithium resources will significantly influence geopolitical dynamics.
Investor Concerns Regarding Lithium Block Auctions
The lack of investor interest in the J&K lithium block can be attributed to several factors:
Extraction Difficulties: Extracting lithium from hard rock pegmatite deposits is challenging.
Underdeveloped Reporting Standards: Current standards used in tender documents are inadequate.
Limited Information: Bid documents often lack detailed information about the blocks, leading to uncertainty.
Size Limitations: Some blocks are considered too small to apply modern mineral exploration tools.
Feasibility Studies: There is no clarity on whether beneficiation studies have been conducted to assess lithium extraction feasibility.
Resource Classification: The absence of an investor-friendly resource classification code hampers interest.
Current Status of Other Lithium Deposits
Chhattisgarh: Recently, the Ministry of Mines successfully auctioned India’s first lithium block in Korba district. A private exploration company, funded by the National Mineral Exploration Trust (NMET), has found hard rock lithium deposits ranging from 168 to 295 parts per million (ppm).
Other States:
Manipur: Efforts to explore lithium in Kamjong district faced resistance from local communities.
Ladakh: Exploration in the Merak block yielded disappointing results.
Assam: Plans for upgrading lithium exploration in Dhubri and Kokrajhar districts were recommended for cancellation by the NMET.
Way Ahead to Boost Lithium Exploration in India
Improve Reporting Standards: To attract private investment, India must adopt internationally compliant mineral reporting standards aligned with the Committee for Mineral Reserves International Reporting Standards (CRIRSCO). Improved clarity on economic viability is essential, especially as global lithium prices fluctuate.
Allocation to Government Companies: Blocks that fail to attract minimum bids should be allocated to government companies for prospecting or mining operations, as permitted under the Mines and Minerals (Development and Regulation) (MMDR) Act.
Global Best Practices: Inspired by practices in countries like Chile, where lithium is designated as a strategic resource and its development is exclusively managed by the state, India can adopt similar measures to ensure effective management and exploitation of its lithium resources.
