Self-reliance in inputs for eco-friendly mobility is an important goal for the country, so any lithium strike should get us up and running. Earlier, a small discovery in Karnataka made news, but it is a major discovery in Jammu and Kashmir (Jammu and Kashmir) that could put India on the world map of deposits of this metal after the Geological Survey of India found 5.9 Reported “estimated” lithium resources. million tonnes in Reasi district. This figure is about 5.5% of the world’s identified total, which is put at 98 million tonnes by the US Geological Survey, with half of it in South America’s ‘lithium triangle’ of Bolivia, Chile and Argentina. Australia and China are also well endowed. For India to join the league of the latter trio, J&K’s quest will require scores that offer high levels of confidence. The portion of our well-indicated reservoir that can be profitably extracted for industrial use is counted as our reserves. It may take time, but a shortage of the metal and its use in batteries for electric vehicles (EVs) has sparked a worldwide scramble for it. Last year saw a spectacular rise in global prices. Lithium carb onate and hydroxide, key inputs for EV power-packs, were both set to exceed $80 a kilogram by the end of 2022, down from less than $20 in mid-2021, and remain near their peak rates.
This light silvery-white metal found in the earth’s crust has taken the shape of a big red dot on the geopolitical map. Among global scholarship the objective of carbon neutrality has begun to set economic terms, given the increased threat of trade wars, despotic inward turning, and outright de-globalization. And big red China dominates the lithium supply chain. Beijing has tied up with South American suppliers and has placed its hold on refining locations with nearly two-thirds of the world’s lithium cell assembly under Chinese control. The US was alarmed at this (along with microchips) outing, that it went against its free-market principles to create an industrial policy behind a trade barrier last year, with state funds to develop its own EV supply. was assigned to do. chain, china style. With the spirit of free trade openly violated by its Inflation Reduction Act, an oddly named US law, other countries with EV ambitions have joined the scramble. Lithium’s lightness and ability to pack in energy make it a good choice for vehicles and devices running on rechargeable batteries, as lithium ions can store and release electricity without increasing body weight. Other uses of the metal are increasingly being pushed into the shadows. As the world’s roads go electric, annual demand for the metal could reach 3-4 million tons by 2030, nearly five times the 2022 usage estimate, according to a McKinsey report. Jockeys for supply security are only expected to intensify. New entrants seek a competitive edge to chase China’s lead.
India Inc has also outlined ambitious plans for battery giga-factories, partly led by financial incentives for production. Private Indian candidates in this emerging sector include Mahindra, JSW, Hero, Ola, Suzuki-Toshiba and existing car-battery makers, while state-run ISRO and BHEL also have joint plans; But it is Reliance and Adani who have made waves with large enterprises. Should Jammu and Kashmir’s tentative discovery of lithium qualify as ‘reserves’, lithium battery makers could integrate their operations backwards into refineries and power-cell making. In turn, this will rid us of major import dependency and help electrify Indian traffic faster. But it’s a long haul and we shouldn’t get ahead of ourselves. The stash is awaiting verification.
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