Jammu and Kashmir fails to get lithium block bids for the second time

04 Jul 2024 CW Team

India's Jammu and Kashmir has faced another setback in its efforts to auction mining rights for newly discovered lithium reserves, estimated at 5.9 million metric tons. Despite a second attempt to attract bids, no offers were received, indicating on-going challenges in developing these critical mineral resources.

Initially discovered in February 2023, these lithium reserves were first put up for auction in November, but the required minimum of three bids was not met. The block was re-auctioned in March with a deadline of May 14, but still failed to attract interest.

A source, speaking anonymously, mentioned that the block might now be handed over to a government agency for further exploration. This development comes as India focuses on securing critical minerals essential for electric vehicle batteries, both domestically and overseas.

The lack of interest has raised questions about the composition of the lithium deposit in Jammu and Kashmir. Last year, the Indian government identified 30 minerals, including lithium, nickel, titanium, vanadium, and tungsten, as crucial for its clean energy initiatives.

(Source: ET)

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