HomeNewsIndiaIndia's tryst with its largest found lithium reserve marred with many challenges

India's tryst with its largest found lithium reserve marred with many challenges

India currently imports most lithium and lithium-ion cells mainly from China and other countries. The metal is used in electric vehicles and renewable energy equipment which are crucial for India’s transition to clean energy.

February 18, 2023 / 11:45 IST
Story continues below Advertisement
India has adopted a two-pronged approach to source lithium – scout domestically and acquire internationally.
India has adopted a two-pronged approach to source lithium – scout domestically and acquire internationally.

The recent announcement by India’s Geological Survey of India (GSI) on its preliminary exploration of lithium reserves has excited many industries dependent on the scarce alkali metal. According to the GSI, it has established “lithium inferred resources” – which are calculated based on a physical and chemical study of the surface and samples – along the Salal-Haimana area of Reasi district in Jammu and Kashmir.

The news has given hope to manufacturers of lithium-based batteries, electric vehicles, solar equipment and other industries that are currently dependent on lithium imports from China and other countries. According to government data from the Ministry of Commerce and Industries, between April-December of 2022-23, India shelled out Rs. 163 billion for the import of lithium and lithium-ion.

Aditya Vikram, Managing Director of Renon India, a lithium-ion battery manufacturer from Gujarat, told Mongabay-India that if the metal is available domestically, the battery production cost can come down 5% to 7%. India currently imports all the major components that go into the Li-ion cell manufacturing are currently imported.

Story continues below Advertisement

“Lithium batteries comprise around 100-200 lithium cells for electric two-wheeler applications. Lithium cells are composed of elements like lithium, cobalt, manganese, nickel, copper, graphite and others. The advantage the domestic market can give us is a stable supply independent of evolving geopolitics,” he said.

He added that those dependent on imports often face price fluctuations of imported lithium cells due to rising imbalance in the dollar-to-rupee rates and supply chain issues.