Experts say India's huge lithium discovery can be a boon for world's 'white gold' quest, here's how

On, February 9, India found its massive lithium reserve in Jammu and Kashmir. A reserve totalling 5.9 million tonnes was discovered in the Reasi district of Jammu and Kashmir by the Geological Survey of India (GSI). Lithium is a key component in batteries, electric vehicles and other renewable energy solutions.

This was not the first time when lithium reserves were found in India. In 2021, 1,600 tonnes of lithium were also discovered in Karnataka, but that was nowhere close to the significant reserves found in Jammu and Kashmir. 

To understand what this discovery could mean for India and how can it change India’s fate, WION talked to some experts about its significance in India’s efforts towards clean energy. 

Lithium, the ‘white gold’ can transform the fate of the world

Australia, Chile, and China are the three biggest producers and exporters of lithium, which has the power to not only change the fate of those who control it but also the fate of the world. It is one of the most sought-after minerals globally and is often called ‘white gold’. Lithium has got the status of gold because of its usability and demand in the global energy market. 

“Lithium is an essential growth driver for the global energy transition," said Ravi Karkara, Global Sustainability Champion.

“The lithium market is undergoing a transformation. Demand for the metal has risen sharply in recent years, and investors are stepping into the market at a time when supply has not kept pace with rising demand,” said Karkara, co-founder of global initiatives like Un-Plastic Day and Green Hydrogen Day. 

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Commodities trading giant Trafigura estimates demand will hit 800,000 tonnes of lithium carbonate equivalent this year - overshooting supply by 140,000 tonnes - and sees demand rising by a further 200,000 to 250,000 tonnes annually through 2025, Katara noted. "The traders are stepping into the lithium market at a time of dramatic transformation.”

Lithium is not a new mineral that is now being suddenly flushed into the global markets. For years, it has been used by niche manufacturers like pharmaceuticals and industrial lubricants, but now as the world is shifting towards green energy, a whole market has been opened for Lithium. 

Karkara said, “Now as carmakers have taken over as the biggest buyers (and consumers), miners have been shifting towards a shorter-term pricing model that better reflects the mismatch between demand and supply.” 

An essential growth driver for Lithium will be its use for batteries in electric vehicles (EVs). “Lithium-ion batteries are the critical pillar in a fossil fuel-free economy, and their usage in electric vehicles and stationary energy storage has grown significantly in recent years thanks to technological advancements and considerable price declines”, stressed Karkara. 

What can be the best use of this massive Lithium discovery for India’s growth?

Even after making progress in several aspects of sustainable development, the world is still not on the right track. We are far from achieving the seventh of the Sustainable Development Goals (SDGs) that ensure access to affordable, reliable, sustainable and modern energy by 2030.

Globally, 733 million people still have no access to electricity, and 2.4 billion people are still cooking their food using fuels that are dangerous for their health and environment. 

Looking at all these factors, India also announced its goal in October 2021 to achieve net zero greenhouse gas emissions by 2070. And to achieve this goal, India would require reducing its greenhouse gas emissions significantly, in which Lithium can play a crucial role. 

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Pointing to India’s growing population and economy,  Karkara said, “India's announcement will help make renewable energy more affordable for consumers, which will increase its attractiveness as an alternative source of power. It will also help India reduce its carbon footprint on the international stage, which has been one of its biggest challenges in recent years due to its large population and growing economy.”

Erik Solheim, former executive director of the United Nations Environment Programme (UNEP), said that this can be an opportunity for India as “Lithium is a critical component in electric batteries, for cars and other uses. When the entire global car industry is turning electric over the next few years, there will be a huge demand for lithium.”

This discovery could be a big asset for India and might “be a very important source of raw materials for the rapidly developing electric vehicle industry in India led by companies like Ola, Tata and Mahindra”, noted Solheim.

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“Production of electric batteries and electric vehicles is a big opportunity to create jobs and prosperity in India. The best way of utilising lithium is definitely to build a domestic electric battery industry. The value of the battery is 40-50% of the value of the electric vehicle so it’s a big deal that makes the batteries.”

According to  Karkara, EVs have so far served the richer segment of global consumers; the ones who could afford to buy this expensive mode of transportation and find EVs an ideal choice for curbing climate change. 

The mass population of India is still far from using EVs in their daily life and that is because of the price of these vehicles. As most of the Lithium is exported from other countries, it becomes difficult to bring down the price range to nominal levels. 

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 But with the latest Lithium found in J&K, “India has taken the centre stage, this will open up a specialized industry, creating many jobs and lead to development in Jammu”, said  Karkara. 

The best way to utilise this vital reserve would be to use Lithium in manufacturing batteries, as battery technology plays a pivotal role in enabling sustainable transport. 

Karkara recommended that the Government of India should not engage in the raw export of Lithium, but rather use the material to become the new global capital of Lithium-ion batteries. 

The discovery of the massive reserve in India sparks new hope for the country, which has largely remained import-dependent on the mineral. 

Besides EVs, lithium is also used in the medical industry, electronics that power our phones, solar panels, and other renewable technologies required for the transition to clean energy. This discovery may usher India into a new era.

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