The government of India announced on Thursday that 5.9 million tonnes of the lithium had been discovered in Jammu and Kashmir.
The newly discovered lithium, found by Geological Survey of India, estimated at 59 lakh tonnes and according to the current market price it is worth INR 3400 billion. Russia is believed to have invaded Ukraine to gain unbroken reserves of lithium!
In 2021, much smaller deposits of lithium were found in the southern state of Karnataka.
Lithium is a rare element crucial for manufacturing electric vehicles. It is a key component in rechargeable batteries that power numerous gadgets like smartphones and laptops, besides just electric vehicles.
With a total of 8 million tons, Chile has the largest known reserves of lithium in the world. This puts it ahead of other countries with significant reserves, such as Australia (2.7 million tons), Argentina (2 million tons), and China (1 million tons).
Pratik Kamdar, Co-Founder of Neuron Energy, a Mumbai-based startup which provides lead-acid and lithium-ion technology batteries for E-Bike, E-Rickshaws, and Golf Carts, said, "With the increased adoption of electric mobility in recent years, there is a huge demand for Li-ion batteries. The recent finding of 5.9 million tonnes of lithium in Jammu & Kashmir will significantly boost the sector. Currently, India is also progressing into cell manufacturing of batteries and it will provide the much-needed impetus to the sector as it will reduce the dependence on imports while also solving the supply-chain challenges as the country will have its own reserves of lithium. There will also be a cost impact as the cells, when manufactured indigenously, will become cheaper."
Currently, India is depended on Australia and Argentina for lithium imports.
Bolivia has by far the world’s largest lithium reserves however most of it remains in the ground as the country does not have the developed infrastructure to excavate it. Due to this, Bolivia does not rank anywhere near the top in actual lithium production.
India imports many important metals such as lithium, nickel and cobalt. With the new discovery of lithium reserves in Jammu and Kashmir, battery and EV manufacturers will not have to depend on imports. Local lithium reserves will help reduce the price of batteries in India, which will further reduce the price of EVs.
One ton of lithium is priced at INR 57.36 lakhs. India has got 59 lakh tonnes of lithium Reserves. That is, its value today will be Rs 33,84,31,021 lakh rupees (3,384 billion ) This price is at current market rate. With the global market, its price varies all the time.
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