Indian EV Market to Get a Major Boost From New Lithium Reserves

In what comes as a surprise, the Geological Survey of India has found large reserves of Lithium hidden deep inside the earth in the Salal-Haimana area of the Reasi district of Jammu and Kashmir. Estimated to be approximately around 5.9 million tonnes, this is the first big depository to be discovered in the country. A couple of years back scientists had first found a 1,600 tonnes reserve in Mandya, Karnataka confirming the presence and possible mining of the mineral in India.

Lithium is the new crude oil. A key component used in the manufacturing of rechargeable batteries this rare earth mineral has the power to change the fate of a country and make it the new superpower. Currently Australia, Chile and China are the biggest exporters of lithium and Indian manufacturing industry is heavily dependent on these countries for its lithium demand. But with latest discovery, the country now can change its fate and become global powerhouse. Here are all the details.

Lithium and its Importance

Lithium is a non-ferrous metal that is believed to be formed by the bright stellar explosions called Novae. One of the lowest density metals on the periodic table, lithium based rechargeable batteries are known for their high energy density compared to any other rechargeable battery system. First created in 1985, the importance and significance of this metal was limited until the EV revolution. With the demands for EVs increasing and the world fearing a lithium shortage by 2025, this new reserve can help the country ascertain its command over the global lithium market in the coming years.

Roadblocks in Lithium Mining

One of the biggest roadblock in the mining of lithium in the world has been environmental concerns. Extraction of lithium from the underground brine reservoirs requires large amounts of water and all the current reserves are found in areas that are dealing with water scarcity. This makes the Indian reserve a crucial alternative for the future due to its abundance of water.

What does the discovery have in story for the Indian auto industry?

With the new reserve, Indian can finally meet its internal demand while also setup the country as potential exporter. This coupled with the central government’s incentives of USD 3.4 billion to expedite EV adaptation means, that India can comfortably meet its 2070 net zero goal carbon emission goal. The new reserve will also give a big boost to companies like Tata Motors and Maruti Suzuki who have currently signed MoU’s with international and local partners to manufacturer and supplies batteries for EVs.

In addition, the manufacturing of the costliest part of an electric vehicle locally will result in the cost of the end product coming down drastically and increase the switch to EVs.

So, with the new mine set to enter commercial production soon, we can expect a growth in the number of electric vehicles along with an increase in the battery manufacturers in the country.