In recent months, India has witnessed a surge in the discovery of lithium reserves, with Jammu & Kashmir, Rajasthan, and Karnataka all making headlines for their lithium deposits. The latest addition to this growing list is Jharkhand, a state in eastern India known for its rich reserves of various minerals. This development holds strategic importance for India as it not only enhances the country’s energy security but also advances its journey towards self-sufficiency in critical mineral supplies.
Lithium, often referred to as ‘white gold,’ has become a prized commodity worldwide, primarily due to the global shift towards electric vehicles (EVs) driven by concerns about climate change. While only a handful of countries possess significant lithium reserves, China has emerged as a dominant force in lithium mining and processing, despite not having the largest lithium reserves.
India has set ambitious goals for itself, aiming to achieve a 30 percent market share for EVs in new vehicle sales and increase non-fossil energy capacity to 500 GW by 2030. However, a significant obstacle to achieving these goals has been India’s dependence on neighboring countries, particularly Hong Kong and China, for its lithium requirements. According to reports by JMK Research and The Institute for Energy Economics and Financial Analysis, India’s annual lithium-ion battery market is projected to grow to 116 GWh by FY30, with EVs accounting for 90 percent of this market.
The story of lithium in India dates back to 1999 when it was first discovered in Jammu & Kashmir. However, at that time, lithium was not considered a glamorous or high-demand metal. It found applications in sectors such as specialty chemicals, glass, and pharmaceuticals, but importing lithium was a more economically viable option than investing in mining, which was resource-intensive and unprofitable. Times have changed dramatically since then, with nations worldwide collectively combating climate change. Lithium has now become the most sought-after metal for EVs and battery storage, fundamentally transforming the mining industry’s economics.
The Geological Survey of India (GSI) has been actively involved in the exploration of lithium and associated elements across various states in India. Projects in states like Bihar, Chhattisgarh, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Madhya Pradesh, Meghalaya, Karnataka, and Rajasthan have been conducted between 2016-17 and 2020-21. In the current Field Season Programme (FSP) for 2021-22, GSI has initiated five more projects focusing on lithium and associated minerals in Arunachal Pradesh, Andhra Pradesh, Chhattisgarh, Jammu & Kashmir, and Rajasthan.
Experts have noted that the discovery of lithium reserves in India holds strategic significance. It not only enhances the nation’s energy security but also contributes to building self-sufficiency in critical minerals. This development has the potential to reduce India’s import bill, narrow the trade deficit, and play a pivotal role in achieving India’s net-zero emissions target. Furthermore, these lithium reserves can accelerate the adoption of green transportation and green energy, making them crucial for India’s sustainable future.
It is important to note that most of these lithium reserves are at the G3 exploration stage, which represents preliminary exploration and initial assessments. Progression to the G2 (general exploration) and G1 (detailed exploration) stages is required before mining can commence. Bringing these reserves to full-capacity commercial production is expected to take approximately six to eight years.
Jharkhand’s emergence as a hub for lithium reserves in India marks a significant milestone in the country’s quest for energy security and self-reliance. With the global focus on sustainable energy solutions, these reserves have the potential to play a vital role in India’s green energy revolution.
