 "Lithium auction roadmap to be released by end of August: Mines secretary")
A monumental stride towards India’s energy independence is on the horizon, as the Ministry of Mines is poised to release the highly anticipated lithium auction roadmap for the 5.9-million tonne (mt) lithium reserves discovered in the Reasi district of the northern Union Territory (UT) of Jammu & Kashmir (J&K) by the end of this month.
The recent parliamentary approval of the Mines and Minerals (Development and Regulation) Amendment Bill, 2023, has invigorated efforts to expedite the comprehensive auction roadmap. Vivek Bhardwaj, secretary, Ministry of Mines while speaking to Business Standard disclosed that the ministry is in the final stages of refining the timeline for a landmark lithium auction in the region.
“With Bill securing Parliament’s nod, we are now diligently working on shaping the framework of the auction roadmap,” Bhardwaj said.
This strategic move aligns with India’s relentless pursuit of sustainable mineral development and underscores the government’s commitment to fostering innovation and economic growth.
Although there is currently no fixed deadline for the auction, Bhardwaj had previously announ
ced at an industry event on May 2 that the auction would conclude by the year's end. The government has also put forward a transaction advisor recommendation to the Jammu & Kashmir government for the impending auction.
With India removing lithium along with five other atomic minerals — beryllium, niobium, titanium, tantalum, and zirconium — and allowing their private exploration and mining, the country is likely to move forward towards energy self-sufficiency and sustainability.
The Union government also released its first-ever critical minerals list on June 28, identifying 30 key critical minerals crucial to the nation’s economic growth and technological development last month.
The list encompasses 30 minerals, including 17 rare earth elements (REEs) and six platinum-group elements (PGE), each designated as critical based on their economic importance and limited availability in India’s geological reserves.
With the completion of these crucial steps, India’s journey towards becoming a prominent player in the global lithium market will take a resolute leap forward. The move will help self-sufficiency in powering everything from smartphones to electric vehicles.
Though lithium and its compounds have many industrial, technological, and medical uses, around 80 per cent of it goes to producing batteries, according to the United States Geological Survey (USGS) 2022.
India’s prominence
The Geological Survey of India’s (GSI’s) discovery of 5.9 million tonnes of lithium in J&K has propelled India to the world’s seventh position among the world’s largest holders of lithium reserves.
According to the 2022 United States Geological Survey (USGS) report, the world's total lithium reserves stood at 98 million tonnes. The inclusion of Indian reserves would raise this figure to 103.9 million tonnes.
The top six countries possessing 76 per cent of the world's lithium reserves include Bolivia, Argentina, the US, Chile, Australia, and China.
Presently, India meets its lithium demand exclusively through imports. Imports of Li-on batteries reached $2.8 billion in 2022-23, with more than 95 per cent of it coming from Hong Kong and China, the Ministry of Commerce data shows.
The commencement of lithium mining in Jammu & Kashmir is set to trigger the development of India's domestic refining sector. Presently, despite not being the leading lithium producer, China commands approximately 75 per cent of the global lithium refining capacity. While the lion's share of lithium production, over 70 per cent, occurs in two countries — Australia and Chile — the processing is outsourced to China.
The recent parliamentary approval of the Mines and Minerals (Development and Regulation) Amendment Bill, 2023, has invigorated efforts to expedite the comprehensive auction roadmap. Vivek Bhardwaj, secretary, Ministry of Mines while speaking to Business Standard disclosed that the ministry is in the final stages of refining the timeline for a landmark lithium auction in the region.
“With Bill securing Parliament’s nod, we are now diligently working on shaping the framework of the auction roadmap,” Bhardwaj said.
This strategic move aligns with India’s relentless pursuit of sustainable mineral development and underscores the government’s commitment to fostering innovation and economic growth.
Although there is currently no fixed deadline for the auction, Bhardwaj had previously announ
ced at an industry event on May 2 that the auction would conclude by the year's end. The government has also put forward a transaction advisor recommendation to the Jammu & Kashmir government for the impending auction.
With India removing lithium along with five other atomic minerals — beryllium, niobium, titanium, tantalum, and zirconium — and allowing their private exploration and mining, the country is likely to move forward towards energy self-sufficiency and sustainability.
The Union government also released its first-ever critical minerals list on June 28, identifying 30 key critical minerals crucial to the nation’s economic growth and technological development last month.
The list encompasses 30 minerals, including 17 rare earth elements (REEs) and six platinum-group elements (PGE), each designated as critical based on their economic importance and limited availability in India’s geological reserves.
With the completion of these crucial steps, India’s journey towards becoming a prominent player in the global lithium market will take a resolute leap forward. The move will help self-sufficiency in powering everything from smartphones to electric vehicles.
Though lithium and its compounds have many industrial, technological, and medical uses, around 80 per cent of it goes to producing batteries, according to the United States Geological Survey (USGS) 2022.
India’s prominence
The Geological Survey of India’s (GSI’s) discovery of 5.9 million tonnes of lithium in J&K has propelled India to the world’s seventh position among the world’s largest holders of lithium reserves.
According to the 2022 United States Geological Survey (USGS) report, the world's total lithium reserves stood at 98 million tonnes. The inclusion of Indian reserves would raise this figure to 103.9 million tonnes.
The top six countries possessing 76 per cent of the world's lithium reserves include Bolivia, Argentina, the US, Chile, Australia, and China.
Presently, India meets its lithium demand exclusively through imports. Imports of Li-on batteries reached $2.8 billion in 2022-23, with more than 95 per cent of it coming from Hong Kong and China, the Ministry of Commerce data shows.
The commencement of lithium mining in Jammu & Kashmir is set to trigger the development of India's domestic refining sector. Presently, despite not being the leading lithium producer, China commands approximately 75 per cent of the global lithium refining capacity. While the lion's share of lithium production, over 70 per cent, occurs in two countries — Australia and Chile — the processing is outsourced to China.
As the imminent release of the lithium exploration roadmap and the upcoming auction draw near, India stands on the cusp of a watershed moment, embarking on a journey towards energy self-sufficiency and sustainability.
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