India's Geological Survey discovers second lithium reserve in Rajasthan

In yet another boost for India’s net zero emissions, the Geological Survey of India (GSI) has discovered lithium reserves in Rajasthan's Degana (Nagaur). The find comes three months after the 5.9 million tonnes lithium reserves in J&K. While the capacity of the reserve has not been disclosed, media reports are citing Rajasthan’s government officials stating the state's reserves to be even larger than the previous find. 

Often pegged as the ‘white gold’, lithium has emerged as a metal of priority even for India given its ambitious targets of achieving 30 per cent electric vehicle sales of total new vehicle sales and increasing non-fossil energy capacity to 500 GW by 2030. 

“India’s annual lithium-ion battery market is expected to grow to 116 GWh by FY2030 from 2.6 GWh in FY2021, with EVs accounting for 90 per cent of the overall market (according to a report by JMK Research and The Institute for Energy Economics and Financial Analysis),” said Prahalathan Iyer, Chief General Manager – Research & Analysis, India Exim Bank. 

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According to information available, lithium reserves which have been found in Rajasthan are in the same Renvat hill of Degana and its surrounding area, from where Tungsten mineral was once supplied to the country. But this confirmation of the discovery of lithium reserves isn’t new. 

In India, lithium was first discovered in Jammu & Kashmir in 1999. But back then, lithium was a non-glamourous metal. As lithium was used in sectors like specialty chemicals, glass, and pharmaceuticals, it made sense to import lithium for these various needs instead of further progressing with the finding and venturing into mining. 

But now with the major push towards electric vehicles to reduce carbon emissions, lithium has become the most sought-after material. Another reason why the Indian government didn’t pursue with the mining of lithium was that lithium mining is a resource devourer and not profitable. 

“As India discovers significant lithium reserves in Rajasthan, in addition to the previously discovered reserves in Jammu and Kashmir, the country is well positioned to become the 3rd largest market for EVs in the next 4 years," said Varun Goenka, CEO & Co-Founder, Chargeup.

Goenka added that batteries, being the single largest cost and supplies dominated by China, have been a major obstacle for India's EV industry. However, with the 'Make in India' initiative and the discovery of lithium reserves, India is now able to reduce its dependence on foreign countries and control the fluctuating price of lithium. This development not only enables India to meet its domestic requirements but also allows it to supply lithium to other countries, creating a promising future for the country's EV industry.  

Currently, China dominates lithium mining and processing, even without having the largest lithium reserves. And to reduce India’s this dependence on neighbouring countries (as India does not have a lithium supply chain in the country) - primarily Hong Kong and China  - the GSI carried out 14 projects on lithium and associated elements in Bihar, Chhattisgarh, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Madhya Pradesh, Meghalaya, Karnataka and Rajasthan between 2016-17 to 2020-21. 

During 2021-22, GSI has taken up five projects on lithium and associated minerals in Arunachal Pradesh, Andhra Pradesh, Chhattisgarh, Jammu & Kashmir and Rajasthan. Result: Ministry of Mines has finally confirmed the 5.9 million ton of lithium reserve in J&K.

“The discovery of lithium (inferred) reserves in J&K, India is strategically important for the country as it improves India’s energy security by securing the critical minerals supplies and build self-sufficiency,” explained Anish Mandal, Partner, Deloitte India. 

He added that in addition to reducing the country’s import bill and trade deficit, the reserves could also help India achieve its net zero emissions target by accelerating green transportation and green energy adoption.