India has decided to move ahead with exploration for extracts that support the export of green energy and decarbonise the economy. The Mines Ministry in India has decided to execute further exploration of Lithium in Jammu & Kashmir across the existing Lithium blocks before going through the auctions. As the two attempts of the July 2024 auction for lithium have failed due to the absence of bidding, the pathway India has discovered to conduct additional exploration of the deposits.
“Exploration will be around the G3 level, perhaps, and will take it to the G2 level or general exploration stage, thereby giving a clearer picture of the reserves.” says officials of the Ministry of Mines, the Government of India.
In 2023, the Indian government announced the discovery of massive lithium deposits in the Jammu and Kashmir union territory. In addition to renewable energy and expanding green power, Lithium is emerging as a building block for leading the nation’s production of electric vehicles and batteries.
India is ranked sixth globally in terms of discovering lithium resources; however, even after massive discoveries, lithium prices have tumbled, making it significantly less attractive. However, India’s mines ministry is exploring ways to expand commercialisation, but due to clay accumulation, its operating and maintenance costs are higher. It is a chemical-intensive process to extract lithium deposits out of clay accumulation within the technological frontier. By the time the first auction failed, the price had fallen by 60%, while for the second bid, it had fallen down further. So, India decided to put it on hold and extend lithium exploration for the adoption of electric vehicles.
