Explained: Why discovery of lithium deposits in J&K is a big deal for India

India has for the first time found reserves of lithium. Approximately 5.9 million tonnes of lithium reserves were discovered in Jammu and Kashmir’s Reasi district, according to the Ministry of Mines. “Geological Survey of India 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,” the Ministry of Mines said. It added that 51 mineral blocks including lithium and gold were handed over to respective state governments. “Of these 51 mineral blocks, five 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,” the ministry added. Let’s take a look at why this is a big deal: Why is lithium important? Lithium is a non-ferrous metal. Discovered in 1817 by Johan August Arfvedson, it is one of the most in-demand minerals in the world. It is toxic in nature and reacts ‘vigorously’ with water. Used in smartphones, mobile chargers, laptops, pacemakers, toys and clocks, lithium is also an important component in Electronic Vehicle batteries. According to Moneycontrol, lithium has been given the nickname ‘white gold’ due to its sheer widespread use. The year 2022 witnessed lithium shortages with the supply unable to keep up with demand amid the increasing EV revolution. As per Moneycontrol, the International Energy Agency says the planet could face lithium shortages by 2025_._

Half the world’s lithium deposits are in the salt flats of Argentina, Bolivia, and Chile.

Meanwhile, Australia has around 2.7 million tonnes of lithium resources, as per Moneycontrol. Much of the world’s new supply of lithium comes from new sources such as China’s lepidolite deposits – which come with their own new disruption potential, as per Reuters. Why is this a big deal for India? The discovery comes in the backdrop of India looking to strengthen its supply of key minerals, including lithium, which will be critical to further its Electric Vehicle plans. As per BBC, India has thus far relied on Australia and Argentina to meet its lithium needs. The Indian government has stated its goal is to have EVs make up at least 30 per cent of private cars by 2030.

EVs are powered by lithium-ion batteries.

As per ET Online, the Centre has already announced $3.4 billion in incentives to bolster the adoption of EVs. But BloombergNET reported that lithium-ion battery costs last year increased for the first time in the EV era. The Centre wants to manufacture such batteries – often the most expensive component – locally thus making it more affordable as well as making India a potential exporter, as per ET Online. But India simply does not have the raw materials needed to fulfill even domestic demand for such batteries – which CRISIL says will increase 100 times by 2030. China, meanwhile, is also the world’s largest EV market and still growing. [caption id=“attachment_11971142” align=“alignnone” width=“640”] Tesla owner Elon Musk.[/caption] It also has the first-mover advantage when it comes to lithium-ion batteries. According to Moneycontrol, China itself has 60 per cent of the world’s capacity when it comes to processing raw lithium products into batteries. Some say China could have captured as much as 80 per cent of the market for lithium-ion batteries. Jasmeet Singh Kalsi, director of Manikaran Power Ltd, told Bloomberg “the entry barriers are quite high” and that China has ‘captured most of it.”

Some say the discovery will give India a renewed push when it comes to becoming self-sufficient.

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Pankaj Sharma, co-founder and director at Log9 Materials, told News18, “Lithium being one of the core elements of the Li-Ion batteries and taking into consideration the financial impact of sourcing Lithium, the recent discovery of lithium reserves in J&K does come in as a new lease of life as it further enables India’s ambition to become self-sufficient in its energy storage needs.” But others are less effusive. Varun Goenka, CEO and co-founder, Charge-up, told the outlet the finding may reduce India’s dependence on imported cells without eliminating it completely. The discovery may also help India meet its environmental goals of reaching ‘net zero’ emissions by 2070,  and meet the goals outlined by the Clean Energy Ministerial’s EV30@30campaign. As per the campaign website, it aims to help realise the multiple benefits offered by electric mobility for innovation, economic and industrial development, energy security, and reduction of local air pollution. The blocks were prepared based on the work carried out by GSI from field seasons 2018-19 to till date. Apart from these, 17 reports of coal and lignite with a total resource of 7897 million tonnes were also handed over to the Ministry of Coal. Seven publications on different themes and intervention areas in which GSI operates were also released during the meeting. “The proposed Annual Programme for the ensuing Field Season 2023-24 was presented and discussed during the meeting. During the ensuing year 2023-24, GSI is taking up 966 programmes comprising 318 mineral exploration projects including 12 marine mineral investigation projects,” the ministry further said. The Geological Survey of India has formulated 115 projects on strategic and critical minerals and 16 projects on fertiliser minerals. “55 programmes on geoinformatics, 140 programmes on fundamental and multidisciplinary geosciences, and 155 programs for training and institutional capacity building have also been taken up,” the Mines ministry stated. The Geological Survey of India (GSI) was established in 1851 to find coal deposits for the Railways. Over the years, GSI has not only grown into a repository of geo-science information required in various fields in the country but has also attained the status of a geo-scientific organisation of international repute. Its main functions relate to creating and updating of national geoscientific information and mineral resource assessment. These objectives are achieved through ground surveys, air-borne and marine surveys, mineral prospecting and investigations, multi-disciplinary geoscientific, geo-technical, geo-environmental and natural hazards studies, glaciology, seismo-tectonic study and carrying out fundamental research. GSI’s chief role includes providing objective, impartial and up-to-date geological expertise and geoscientific information of all kinds, with a focus on policy-making decisions, and commercial and socio-economic needs. With inputs from agencies Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News ,  India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.