Discovery of Lithium : A Game Changer for India

China is one of the largest EV battery suppliers to India. Given India’s fraught relationship with the dragon over territorial disputes, this is a matter of concern. Owning more of Lithium resources and strengthening India’s position in foreign Lithium mines are crucial if India is to become self-sufficient in the field of EV production and stop depending on China for EV battery supplies.

Lithium, used in the manufacturing of ceramics and glassware, greases, medicinal compounds, air conditioners and aluminum among other things is an extremely reactive, alkaline and light metal. It is an ideal option for electric vehicle manufacturers like Tesla due to its enormous storage capacity and incredibly low weight. The soft, shining grey metal, also called ‘White-Gold’ is crucial in the modern world. Among other things, it is utilized to construct the essential batteries for electric vehicles. Now India would not need rely as heavily  on imports of Lithium to meet its demands. Given the push for electric vehicles, India’s needs for Lithium shall also increase.

There world has a total 98 million tons of lithium in the world. 5.9 million tons of Lithium resources have been discovered- a first for the nation-in the Salal-Haimana region of Jammu and Kashmir. It is a significant amount of Lithium; it is, however currently insufficient to compare to the top lithium reserves in the world- Australia has 6.3, Bolivia 21, Argentina 17 and China almost 8 million tons of Lithium reserves. It is reported that China has spent more than$16 billion on mining operations abroad to expand its Lithium reserve base. Beijing currently has 55% of the chemical Lithium supply required for battery powered electric vehicles. The principal owner of the Cauchar-Olaroz facility in Argentina, thought to be one of the world’s top Lithium- producing mines, is China’s Ganfeng Lithium. The three nations of Bolivia, Chile and Argentina are collectively referred to as the “Lithium Triangle”.  China is currently increasing its power in the Lithium-Triangle as well.

China is one of the largest EV battery suppliers to India. Given India’s fraught relationship with the dragon over territorial disputes, this is a matter of concern. Owning more of Lithium resources and strengthening India’s position in foreign Lithium mines are crucial if India is to become self-sufficient in the field of EV production and stop depending on China for EV battery supplies. EV batteries contain almost half a teaspoon of sugar. These batteries are lithium-ion and contain numerous distinct cells. One million electric automobiles require around 60,000 tons of Lithium Carbonate equivalent. The Owner of Tesla Elon Musk tweeted that 30 million electric cars would be created by 2027, which would require 1.8 million tons of Lithium Carbonate. This entails an increase of 473 percent in the output of Lithium carbon equivalent to1.8 million tons. Rechargeable Lithium-ion batteries are favored and accounted for 54 per cent of the metal’s demand in 2019. Besides having a higher energy density and a longer life cycle, these batteries are scalable also.

Some of the important uses of Lithium include the batteries, pharmaceuticals, glass and ceramics, aerospace and military, lubricating greases, etc. The metal is also used in the applications such as air-treatment, metallurgy and energy storage. With the increasing demand for Lithium for batteries and other applications, the recent discovery in India could have significant economic and technological implications for countries and industries around the world.

The development of the Lithium deposit is not without its challenges. The process of Lithium extraction from the ground is complex, and requires significant investments in technology and infrastructure. Lithium mining is also a concern for environment. Lithium refining can be a complex and challenging process, depending on the source of Lithium and the method used for its extraction. The largest source of Lithium is mineral deposits such as spodumene, petalite and lepidolite which require mineral processing to extract the Lithium. This process involves crushing the ore and then separating the Lithium using various techniques such as froth flotation, magnetic and gravity separation. Another method for obtaining Lithium is from brine lakes, where Lithium is extracted through evaporation and solar concentration. This method is less complex than mineral processing, but can take a longer time to produce a final product.  The Government of India, therefore, will need to take measures to ensure that the development of this deposit is done in a sustainable and environmentally responsible manner.

India which has relied on imports, now has hope with the finding of a large reserve of Lithium. The fact that the majority of the global Lithium reserve is located in regions with severe water stress makes this discovery more significant. India is a potential replacement because the mineral requires a large amount of water for extraction and the majority of the reserves are in the countries with water shortage. EVs are not the only thing that use Lithium ; it is also used in the medical field, in electronics that run our phones, in Solar Panels and in other renewable technologies essential for the switch to clean energy. In addition to meeting domestic demands, the discovery of this large deposit of Lithium in India would also help the Country to become a major player in the global market for Lithium. As the World moves away from gasoline-fueled combustion engines, demand for Lithium is soaring.

The Central Government has unveiled incentives of at least $3.4 billion to expedite its lagging adoption of EVs as Prime Minister Narendra Modi vows to reach net zero by 2070. The idea is that manufacturing the costliest component- batteries- locally will make the end product more affordable for the mass market and set the country up as a potential exporter, tapping into surging global demands. The initiatives have piqued the interests of billionaires like Mukesh Ambani, whose Reliance Industries Ltd is building an EV battery facility as part of a broader $76 billion push into clean energy.

Undoubtedly, India has a long way to go to catch up. It also faces competition from other countries, including the US, which is pushing to grow domestic battery production in an effort to break China’s hold on the market. Despite all the challenges, the Lithium reserve discovery marks the start of a new era for India and the entire world.