NEW DELHI: In an effort to secure vital lithium resources, the Indian government is preparing to auction lithium reserves in Jammu and Kashmir in the coming weeks, according to sources within the government.

Reports quoting government sources indicate that India is gearing up to auction its lithium reserves in the Union Territory of Jammu & Kashmir in the near future. These sources have revealed that overseas mining companies have expressed keen interest in the upcoming auction.

The discovery of lithium reserves in Jammu and Kashmir earlier this year, totaling 5.9 million tonnes, marked a significant milestone in India's quest to bolster its lithium supply. These reserves were identified during an exploration mission conducted by the Geological Survey of India (GSI) in the Reasi district of Jammu and Kashmir.

In addition to this development, KABIL (Khanij Bidesh India Ltd), a state-owned joint venture established to secure mineral resources abroad, is in the final stages of negotiations to acquire several lithium blocks in Argentina. Furthermore, discussions are underway with the Chilean government to secure additional lithium blocks.

The Significance of Lithium:

Lithium stands as a critical raw material essential for the production of electric vehicle (EV) batteries. Lithium batteries remain the primary choice for EVs due to their remarkable power-to-weight ratio, capable of delivering substantial power while keeping the vehicle's weight in check. These batteries also perform admirably across various temperature ranges and exhibit superior energy efficiency. Consequently, lithium-based batteries are considered a safer and more reliable option compared to alternative technologies.

Furthermore, lithium reserves play a pivotal role in India's ambitious goal to increase EV adoption by 30% by the year 2030. Currently, electric vehicles account for less than 1% of all new car sales in the country, highlighting the urgent need to secure a stable lithium supply to support this transformative shift in the automotive industry.

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