Lithium mining makes significant progress in Chhattisgarh's Korba: Report

Lithium deposits

Mining of lithium, which is crucial in making electric vehicle batteries, has made significant progress in India as one block advanced to the second round of auctions and fresh deposits are being spotted in the initial exploration of another area in Chhattisgarh’s Korba district, the Indian Express reported, quoting data from the Union mines ministry.

This positive news from Korba comes amid a series of hurdles the central government faces in its bid to develop India’s first lithium mine.

The hurdles include the cancellation of auction of a lithium block in Jammu and Kashmir's Reasi district due to insufficient investor interest, cancelling exploration plans in Manipur’s Kamjong district due to “local resistance” and “not encouraging” results from exploration in Ladakh and Assam, the report added.

Moneycontrol couldn't independently verify the report.

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As per the report, a private exploration company funded by the National Mineral Exploration Trust (NMET) has found hard rock lithium deposits in Korba. These range from 168 to 295 parts per million (ppm).

The primary end-usage of the element is in making lithium-ion batteries, which are used in electric vehicles (EVs) and consumer electronics.

The mines ministry has put 38 blocks of critical minerals up for auction, including two lithium blocks — one in J&K’s Reasi district and another in Chhattisgarh’s Korba district since November 2023.

Critical minerals are essential for economic development and mineral security in the country. Their scarcity or dependence on a limited number of countries for extraction and processing can lead to significant supply chain vulnerabilities. To address this, the Mines and Minerals Development and Regulation (MMDR) Act was amended in 2023, granting the Centre the authority to grant mineral concessions for 24 critical and strategic minerals.