The government will invite bids for 20 critical mineral blocks, including for lithium and graphite, in next two weeks, Mines Secretary V L Kantha Rao said on November 14 to news agency PTI.
Last month, the Centre had approved royalty rates of three per cent each for lithium and niobium and one per cent for Rare Earth Elements (REEs).
Critical minerals have become important for the nation's economic development and national security.
Lithium and REEs have gained significance keeping in mind the country's commitment towards energy transition and achieving net-zero emission by 2070.
India, which has been exploring ways to secure supplies of lithium, a critical raw material used to make electric vehicle batteries, in February found its first lithium deposits in Jammu and Kashmir with estimated reserves of 5.9 million tonnes.
KABIL, short for Khanij Bidesh India Ltd, was formed in August 2019 to identify, acquire, develop and process strategic minerals overseas for use in India.
India, among the world's top greenhouse gas emitters, has been pursuing overseas pacts to secure key minerals in resource-rich countries such as Australia, Argentina and Chile.
Lithium-ion battery costs rose last year for the first time in the EV era, according to Bloomberg. Elon Musk bemoaned lithium’s “insane” rally and said high raw material costs were among Tesla Inc.’s biggest headwinds.
As the world moves away from gasoline-fueled combustion engines, demand for lithium, nickel, cobalt and other metals that go into lithium-ion batteries is soaring.
(With agency inputs)
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
