India to auction first-ever lithium mines in Q1FY24
POWER & RENEWABLE ENERGY

India to auction first-ever lithium mines in Q1FY24

Following the discovery of 5.9 million tonnes of lithium reserves in Jammu and Kashmir by the Geological Survey of India (GSI), the Central government is set to invite bids for the auction of the country's first lithium reserve.

This comes after the Geological Survey of India discovered lithium inferred resources (G3) of 5.9 million tonnes for the first time earlier this month in the Salal-Haimana area of Jammu and Kashmir's Reasi District.

It is worth noting that India lacks a lithium refining facility. The Modi administration, on the other hand, has already set a target for EV sales to account for 30% of private automobiles, 70% of commercial vehicles, and 80% of two- and three-wheelers by 2030, citing an urgent need to decarbonize the transportation sector.

Nitin Gadkari, Union Minister for Road Transport and Highways, stated in 2021 that India could reduce its crude oil consumption by 156 million tonnes, or Rs 3.5 lakh crore, if electric vehicle penetration reached 40% in the two-wheeler and car segments and close to 100% in the bus segment by 2030.

UNFC classification

Notably, the United Nations Framework Classification (UNFC), a three-dimensional approach that considers geological, feasibility, and economic considerations, is used to analyse the mineral concession assessment. The geological axis has four stages:

reconnaissance (G4), prospecting (G3), general exploration (G2), and detailed exploration (G3) (G1).

The G3 category, or inferred resource, is defined by the UNFC as amounts associated with a recognised deposit that can be approximated with a low degree of confidence. Inferred resources are resources that can be approximated in terms of quantity, grade, or quantity based on geological evidence, sparse sampling, and reasonably presumed but unconfirmed geological and grade continuity.

Lithium is a soft, silvery-white metal that has earned the moniker "white gold" due to its great demand in the global energy markets. Lithium is used for a variety of purposes and is an important component of electrochemical cells used in batteries for electric vehicles, laptops, smartphones, and other electronic devices.

The discovery of a lithium resource in Jammu and Kashmir could assist India in meeting its goal of reducing emissions and reaching net zero by 2070. This can be accomplished by providing Lithium, a necessary component for electric vehicle batteries. It is important to note that "reserves" are a subset of resources that are economically viable to extract, whereas "resources" refers to an approximate quantity of a geological commodity in discovered and undiscovered deposits.

The International Energy Agency (IEA) predicts that the world will face a lithium shortage by 2025. In the face of a significant increase in demand for electric vehicles, India can play a critical role in addressing global shortages.

According to a World Economic Forum (WEF) report, lithium supply is constrained not only by rising demand, but also by resources concentrated in a few regions and the fact that more than half of current production occurs in water-stressed areas. Notably, the "Lithium Triangle" countries of Argentina, Bolivia, and Chile are thought to hold 60% of the world's lithium reserves.

According to a report by the Central Electricity Authority (CEA), India will have 27,000 Megawatts of battery storage capacity by 2029-30. If India can overcome the challenges ahead, the discovery of the Lithium reserve could be a game changer.

See also:
Lithium reserve found in Jammu and Kashmir's Reasi
India eyes overseas copper, lithium mines to meet domestic shortfall


Following the discovery of 5.9 million tonnes of lithium reserves in Jammu and Kashmir by the Geological Survey of India (GSI), the Central government is set to invite bids for the auction of the country's first lithium reserve. This comes after the Geological Survey of India discovered lithium inferred resources (G3) of 5.9 million tonnes for the first time earlier this month in the Salal-Haimana area of Jammu and Kashmir's Reasi District. It is worth noting that India lacks a lithium refining facility. The Modi administration, on the other hand, has already set a target for EV sales to account for 30% of private automobiles, 70% of commercial vehicles, and 80% of two- and three-wheelers by 2030, citing an urgent need to decarbonize the transportation sector. Nitin Gadkari, Union Minister for Road Transport and Highways, stated in 2021 that India could reduce its crude oil consumption by 156 million tonnes, or Rs 3.5 lakh crore, if electric vehicle penetration reached 40% in the two-wheeler and car segments and close to 100% in the bus segment by 2030. UNFC classification Notably, the United Nations Framework Classification (UNFC), a three-dimensional approach that considers geological, feasibility, and economic considerations, is used to analyse the mineral concession assessment. The geological axis has four stages: reconnaissance (G4), prospecting (G3), general exploration (G2), and detailed exploration (G3) (G1). The G3 category, or inferred resource, is defined by the UNFC as amounts associated with a recognised deposit that can be approximated with a low degree of confidence. Inferred resources are resources that can be approximated in terms of quantity, grade, or quantity based on geological evidence, sparse sampling, and reasonably presumed but unconfirmed geological and grade continuity. Lithium is a soft, silvery-white metal that has earned the moniker white gold due to its great demand in the global energy markets. Lithium is used for a variety of purposes and is an important component of electrochemical cells used in batteries for electric vehicles, laptops, smartphones, and other electronic devices. The discovery of a lithium resource in Jammu and Kashmir could assist India in meeting its goal of reducing emissions and reaching net zero by 2070. This can be accomplished by providing Lithium, a necessary component for electric vehicle batteries. It is important to note that reserves are a subset of resources that are economically viable to extract, whereas resources refers to an approximate quantity of a geological commodity in discovered and undiscovered deposits. The International Energy Agency (IEA) predicts that the world will face a lithium shortage by 2025. In the face of a significant increase in demand for electric vehicles, India can play a critical role in addressing global shortages. According to a World Economic Forum (WEF) report, lithium supply is constrained not only by rising demand, but also by resources concentrated in a few regions and the fact that more than half of current production occurs in water-stressed areas. Notably, the Lithium Triangle countries of Argentina, Bolivia, and Chile are thought to hold 60% of the world's lithium reserves. According to a report by the Central Electricity Authority (CEA), India will have 27,000 Megawatts of battery storage capacity by 2029-30. If India can overcome the challenges ahead, the discovery of the Lithium reserve could be a game changer. See also: Lithium reserve found in Jammu and Kashmir's Reasi India eyes overseas copper, lithium mines to meet domestic shortfall

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement