India will auction J&K lithium reserves later this year: Government

Vivek Bharadwaj, secretary of the Union ministry of mines, on Tuesday said that India will auction the lithium blocks found in Jammu and Kashmir later this year.  

“Have recommended transaction advisor to Jammu and Kashmir government for lithium reserves auction,” Bharadwaj said.

Earlier this year, the Geological Survey of India (GSI) found lithium reserves in J&K for the first time. GSI found Lithium inferred resources (G3) of 5.9 million tonnes in Salal-Haimana area of Reasi District of Jammu & Kashmir (UT).

Lithium is a crucial element at present. Lithium is a non-ferrous metal and is one of the key components in EV batteries. It is critical right now given the government’s push for electric vehicles. It is also used for other battery storage systems such as in the electricity sector.

Lithium-ion batteries are used in wind turbines, solar panels, which are the building blocks of a green economy.
Lithium-ion batteries are used in wind turbines, solar panels, and electric vehicles. A World Bank study suggests that the demand for critical metals such as lithium (Li) and cobalt is expected to rise by nearly 500 per cent by 2050.  

While the global electric vehicle market is projected to reach $823.75 billion by 2030, registering a Compounded Annual Growth Rate (CAGR) of 18.2 per cent from 2021 to 2030, India’s market is projected to register a CAGR of 23.76 per cent by 2028, according to the World Bank study.

Union minister Nitin Gadkari recently said if India could use the recently discovered reserve of lithium in Jammu and Kashmir, it can become the world's number-one automobile manufacturer in the electric vehicle segment.  

At present, India imports all of its lithium from Australia and Argentina and 70 per cent of its Li-ion cell requirement from China and Hong Kong. In 2021-22, India's lithium imports were $22.15 million. Hong Kong, China and the US were the top three sources.

With the J&K reserves, the Centre can move ahead with its ambitious plan of 30 per cent EV penetration in private cars, 70 per cent for commercial vehicles, and 80 per cent for two and three-wheelers by 2030 for the automobile industry. The discovery will also strengthen India’s National Mission on Transformative Mobility and Battery Storage.

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