Lithium Reserves in India: Strategic Significance and Concerns – Explained, pointwise

Introduction

The Union Ministry of Mines recently announced the major discovery of lithium reserves in India in Jammu and Kashmir. The Geological Survey of India (GSI) has established 5.9 million tonnes of inferred lithium resources in the Salal-Haimana area of Reasi District in Jammu and Kashmir. Lithium is considered a strategic element because of its use on batteries used in Electric Vehicles (EVs). The finding of the reserves is being considered as a game-changer in India’s transition towards green mobility.

About Lithium and Its Uses

Lithium is a soft, shiny grey metal found in the earth’s crust. It is a highly reactive and alkaline metal.

Lithium is a key element for new technologies and finds its use in ceramics, glass, telecommunication and aerospace industries. The well-known uses of Lithium are in Lithium ion batteries, lubricating grease, high energy additive to rocket propellants, optical modulators for mobile phones and as convertor to tritium used as a raw material for thermonuclear reactions (fusion).

It is also used to make alloys with aluminium and magnesium, improving their strength and making them lighter e.g., Magnesium-lithium alloy – for armour plating, Aluminium-lithium alloys – in aircraft, bicycle frames and high-speed trains.

Due to its utility in diverse applications, it also referred as ‘White Gold’.

What is the current status of Lithium reserves and extraction?

A World Bank study suggests that the demand for critical metals such as lithium (Li) and cobalt is expected to rise by nearly 500% by 2050.

The global electric vehicle market is projected to reach US$ 823.75 billion by 2030, registering a Compounded Annual Growth Rate (CAGR) of 18.2% from 2021 to 2030, India’s market is projected to register a CAGR of 23.76% by 2028. India is seeking to secure its critical mineral supplies and build self-sufficiency in this sector.

India’s Lithium Reserves

The discovery of 5.9 million metric tonnes of lithium has been made in J&K. This is the first major lithium reserve that has been found in India. Earlier, a survey led by the Atomic Minerals Directorate for Exploration and Research showed the presence of 1,600  tonnes (inferred category) of lithium resources in the Marlagalla area of Karnataka’s Mandya district.

Global Lithium Reserves

South America is a particularly rich supply of the metal, the three nations of Bolivia, Chile, and Argentina are collectively referred to as the ‘Lithium Triangle’. China currently controls 77% of the global lithium-ion battery manufacturing capacity and is home to 6 of the world’s 10 manufacturing companies.

Source: Mint

What steps have been taken by the Government to Explore Lithium Reserves in India?

The Atomic Energy Act, 1962 permits Atomic Minerals Directorate (a constituent unit of Department of Atomic Energy) for exploration of Lithium in various geological domains of the country. For the first time, the National Mineral Exploration Policy of 2016 recognised the need to explore these minerals.

Every year, as per approved annual Field Season Programme (FSP), the Geological Survey of India (GSI, an attached office of Ministry of Mines) takes up different stages of mineral exploration viz. reconnaissance surveys (G4), preliminary exploration (G3) and general exploration (G2) following the guidelines of United Nations Framework Classification (UNFC) and Mineral Evidence and Mineral Content Rules (MEMC-2015) for augmenting mineral resource for various mineral commodities including lithium.

What is the Significance of Lithium Reserves for India?

Reducing Dependence on Imports: In FY2020-2021, India imported lithium and lithium ion worth INR 173 crore and INR 8,811 crore respectively. The demand is likely to rise multifold in the future. The finding of lithium reserves in India will reduce dependence on imports.

Affordable Transition: : The discovery of domestic deposits of lithium will help the expanding the EV ecosystem at reasonable and affordable costs, and make the transition to green mobility more economical.

Meet Government Objectives: This will also help advance the Government’s ambitious plan of 30% EV penetration in private cars, 70% for commercial vehicles, and 80% for two and three-wheelers by 2030 for the automobile industry.

Potential to become Major Producer: The majority of the global reserves are located in regions with severe water stress limiting their ability to scale-up production. India has a potential to replace global lithium supply chains.

Li-ion Battery Ecosystem

ISRO’s Vikram Sarabhai Space Centre has developed and qualified lithium ion cells of capacities ranging from 1.5Ah to 100Ah for use in satellites and launch vehicles. Following the successful deployment of indigenous Lithium-ion batteries (LiBs) in various missions ISRO has decided to transfer the technology to manufacturers to set up facilities for producing lithium ion cells in the country. The Government wants EVs to make up at least 30% of new automobile registrations by 2030 and has focused on developing the value chain for batteries.

Looking to encourage local manufacturing of lithium-ion cells, the Union Government doubled the import duty on lithium-ion cells to 10% in April 2021 and later announced a performance-linked incentive (PLI)) for advanced chemistry cell (ACC) batteries.

What are the challenges in extraction of Lithium?

Geological Stability: According to the seismic zonation map of India, the whole of Jammu and Kashmir, comes under seismologically active Zones IV and V and is also ecologically sensitive. Mining in geologically unstable region will be a major challenge.

Environmental Consequences: Extracting Li from hard rock mines, similar to what has already been proposed in J&K, entails open-pit-mining followed by roasting the ore using fossil fuels. Open-pit-mining, refining, and waste disposal from these processes substantially degrades the environment, including depletion and contamination of waterways and groundwater, diminishing of biodiversity, and considerable air pollution.

Environmental Justice: According to a 2018 study that examined the socio-environmental implications of lithium mineral extraction, lithium mining has produced environmental justice challenges. It is claimed that over the last four decades, sufficient research has not been performed to address the sustainability difficulties posed by lithium mining and processing, particularly the question of its impacts on local populations.

Mining Policy: The absence of an integrated mining policy for strategic metals and minerals, and poor domestic capabilities could hinder exploitation of the recently discovered reserves.

Security Threat: Certain terror groups have threatened against mining of lithium reserves. Security concerns can hamper development of mining industry, especially in attracting labor.

Availability of Technology: India lacks technology to extract lithium and purify it. Lithium is mixed with rocks and other minerals. It would require breaking the rocks, removing volatile chemicals with evaporation and magnetic impurities with magnets besides other chemicals and processing. There is no prior experience in extracting Lithium, nor tested domestic technology. There is lack of established Lithium extraction industry.

What should be done going ahead?

First, The Government can explore technology transfers and tie ups with the lithium metal extraction industry from abroad in the short term, while simultaneously developing domestic technical expertise and know-how.

Second, the Confederation of Indian Industry (CII) has urged the Government to establish ‘India Rare Earths Mission’ to reduce reliance on China. It has urged the Government to encourage private sector mining in the sector and diversify sources of supply for these strategic raw minerals.

Third, CII has also recommended that the public sector firm Indian Rare Earths Limited (IREL), administered by the Department of Atomic Energy, should be split into two entities. While IREL should primarily focus on Thorium mining (for Nuclear Power generation), the second entity should pursue other minerals including Rare Earths and Lithium.

Fourth, the Government can make rare earth minerals a part of the ‘Make In India’ campaign, similar to China’s ‘Made in China 2025’ initiative that focuses on new materials, including permanent magnets that are made using rare earth minerals.

Conclusion

The finding of Lithium Reserves in India has great strategic importance. It can reduce India’s dependence on Imports and make India self-reliant as it transitions to Green Mobility. It can ensure that India’s story of dependence on imports of fossil fuels is not repeated as the economy enters a new green energy era. However, the Government must proactively address the potential challenges in extraction of Lithium and quickly scale-up domestic Lithium production.

Syllabus: GS I, Distribution of key natural resources across the world; GS III, Infrastructure: Energy; GS III, Conservation.

Source: The Hindu, Times of India, Mint, Business Standard, Indian Bureau of Mines