India to invite bids for 20 critical minerals, lithium, graphite in 2 weeks, says report

The Centre will soon invite bids in the next two weeks for 20 critical mineral blocks, a top government official said on Tuesday. The auction process will involve minerals such as lithium and graphite, Mines Secretary V L Kantha Rao told news agency PTI. Critical minerals have become important for the nation's economic development and national security.

The bidding process is a part of the nation's strategy to ensure adequate domestic resources of essential raw materials crucial for powering the green energy transition. Lithium and REEs have gained significance keeping in mind the country's commitment towards energy transition and achieving net-zero emission by 2070.

India in February found its first lithium deposits in Jammu and Kashmir with estimated reserves of 5.9 million tonnes. In July, India tweaked its mining rules by allowing the entry of private miners to search for the materials. In September, a report claimed that Jammu and Kashmir will auction its lithium reserves over the next few months.

Last month, the Union cabinet approved royalty rates for three critical and strategic minerals. The approved royalty rates for lithium, Niobium and REE are 3 per cent, 3 per cent and 1 per cent, respectively.

Government-controlled enterprises have been looking at global sources for these valuable mineral resources. Earlier this month, it was reported India is in talks with Chile and Bolivia for tapping into lithium mining and sourcing of the mineral. The Mines Ministry is reportedly in talks with Argentina for acquisition of blocks, while for Chile, the ministry is on course to sign non-disclosure agreements.

In Bolivia, the government is looking at downstream tie-ups, wherein it will facilitate EV battery-making and processing set-ups by Indian companies who will invest in the South American nation, Hindu Businessline reported quoting ministry officials.

Chile-Bolivia-Argentina together forms the world’s lithium trinity or triangle and account for nearly half of the global resource base for the white metal, which is the key component for batteries used to run electric vehicles (EVs).

Meanwhile, prominent energy giants like Coal India Ltd. and NTPC Ltd. have been planning to foray into the mining sector to tap into these essential materials.

Besides this, Khanij Bidesh India Ltd was formed in 2019, which is a joint venture involving three government-owned companies. It underscores India's commitment to securing critical mineral assets on an international scale, with a primary focus on regions such as Australia and South America.

India imports all major components that are required to make the lithium-ion cell. India imported lithium worth Rs 23,171 crore in FY23, for the manufacturing of electric accumulators, including separators. In FY22, Indian imports for lithium-ion were Rs 13,673.15 crore.

(With agency inputs)

Also read: Govt to auction Jammu and Kashmir's lithium reserves in few weeks: Report

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