Within the next two weeks, the Indian government plans to accept bids for 20 important mineral blocks, including graphite and lithium, marking a major step towards realizing its energy transition goals. This project is in line with India’s resolve to improve national security and secure local resources for the switch to green energy.
Lithium Reserves Found:
In February, India made a significant discovery when it discovered its first lithium resources in Jammu and Kashmir. The country believes that its lithium reserves total 5.9 million tonnes. Private miners were able to look into these vital minerals after mining regulations were changed in July. Rumor has it that Jammu and Kashmir would auction off its lithium riches in the upcoming months.
Royalty rates and the auction process:
Minerals like graphite and lithium that are essential for energy storage will be up for auction soon. Royalty rates have already been established by the Union cabinet; they are 1% for rare earth elements (REE), 3% for lithium, and 3% for niobium. This action highlights the government’s commitment to obtaining necessary raw materials for the renewable energy industry.
Global Partnerships and Conversations:
India and major players in the global lithium market have been in discussions to meet the rising demand for the lithium. The goal of talks with Bolivia, Argentina, and Chile is to obtain access to their lithium reserves. In order to encourage Indian businesses to engage in EV battery production and processing facilities in Bolivia, India is looking into downstream partnerships with the South American country.
Strategic Goals of Enterprises Under Government Control:
Well-known state-owned companies, such as NTPC Ltd. and Coal India Ltd., are preparing to enter the mining industry, highlighting the strategic significance of obtaining necessary resources for the energy transition. Furthermore, the establishment of Khanij Bidesh India Ltd. in 2019, a joint venture including three government-owned enterprises, underscores India’s dedication to safeguarding vital natural resources worldwide, primarily concentrating on Australia and South America.
Import Statistics and Economic Impact:
The fact that India imported lithium for Rs 23,171 crore in FY23-a considerable rise from Rs 13,673.15 crore in FY22-highlights the necessity of developing domestic resources. Because the country depends on foreign suppliers for lithium-ion components, it is essential that electric accumulators and separators be produced domestically.