SBI Cap likely to be hired to advise on lithium auction in J&K

New Delhi: The Jammu and Kashmir Administration has put in motion the process of auctioning lithium mines and is likely to hire SBI Capital Markets Ltd as an advisor to the process by early next week. According to a report in Livemint, “We should be hiring SBI Caps as the transaction advisor within the next few days. The commercial auction of the rare earth minerals is a priority, as we would like to start mining as early as possible," said a senior officer in the J&K administration, seeking anonymity. Why the discovery of lithium deposits 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. 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_._ 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. Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram