- Oct 17, 2022
The Indian Government is in Talks about Permitting Private Miners to Extract Lithium for Battery Production
The Indian government is looking to permit private miners to extract lithium for battery production. This is seen as a way to help India become more self-sufficient in terms of battery production and to reduce its reliance on imported lithium.
Currently, India imports most of its lithium needs, putting it at the mercy of international markets and vulnerable to supply disruptions. By permitting private miners to extract lithium within India's borders, the government hopes to increase the country's security of supply and help spur the development of the domestic battery industry.
How would this make a difference?
l The move could also help to boost employment in India's rural areas, where many of the country's lithium deposits are located. And by encouraging private investment in lithium mining, the government hopes to tap into a new source of revenue.
l Eight minerals will be removed from the restricted list, which means that private enterprises will be able to produce them. These minerals include lithium, beryllium, and zirconium. This will enable the government to auction off licenses to explore lithium reserves.
l The government is also aiming to reduce India's dependence on imports for some critical minerals while putting the country in a better position to compete in the lucrative battery supply chain with the help of Lithium battery manufacturer.
What is the big picture?
l To meet its goal of becoming carbon-neutral by 2070, India seeks to expand domestic production of a variety of zero-emission technologies.
l Additionally, India has committed to constructing 500 gigawatts of clean energy capacity by 2030.
l Some experts believe that, for renewable energy to be used continuously, massive amounts of battery storage must be deployed.
The mines ministry said that government organizations have been looking for lithium and found a small amount in Karnataka state. However, India would need to find and develop more deposits if it wanted to produce lithium on a large scale and reduce its reliance on imports.
China is the biggest refiner in the world, while Australia and Chile now provide the rawest materials. The trade ministry's data showed that India's imports of lithium-ion batteries increased by 54 percent from the previous year to $1.83 billion in the year ending in March.
India is trying to avoid importing products from China and Hong Kong, but they still make up 87% of the nation's purchases. India is also looking to increase its domestic output by purchasing mines abroad. A joint venture has been established with National Aluminium Co., Hindustan Copper Ltd., and Mineral Exploration Corp.
So far, the response from potential investors has been positive, along with lithium battery pack supplier companies expressing interest in exploring India's lithium resources. If all goes to plan, India could soon be home to a thriving battery industry, helping to power the country's growth into the future.