As per the reports, Rajasthan government officials and the Geological Survey of India (GSI) have identified Lithium reserves in Rajasthan’s Nagaur district.
These Lithium reserves found in Rajasthan are said to be more significant than the 5.9 million tonnes of reserve found in Jammu and Kashmir recently. The state’s officials claim that with this reserve, nearly 80 percent of the country’s demand and requirement can be met.
It may be noted here that Lithium is the lightest as well as the softest metal available. A nonferrous metal, it converts chemical energy into electrical energy and is one of the key components in EV batteries.
At the moment, India majorly depends on imports for lithium. Australia has 47 per cent of the world’s total lithium production, while 30 per cent is with Chile, and 15 per cent with China. India already has big plans for the Electric Vehicle sector and these new reserves will go a long way in supporting the government’s aspirations.
The industry has welcomed the news with open arms. Ankit Kedia, Founder & Lead Investor, Capital A said, “Lithium-ion batteries are by far the most efficient, safer, and lightweight battery options for the electric vehicles. This is where the discovery of Lithium reserves in different parts of India augurs very well for the Indian EV ecosystem. It is true that the mere discovery of the Lithium reserves isn’t automatically going to change everything as we will need to build processing infrastructure and expertise.”
He added, “This is an area where countries like China and the US are far ahead of us in terms of sophistication and maturing of markets. At the same time, a start has to be made somewhere, and this potential of domestically produced Lithium usage in supporting the battery manufacturing industry and the overall EV ecosystem is huge. This would bring much needed encouragement in the domestic markets that have currently been affected by the withdrawal of the FAME II scheme. It must be noted that EV adoption in India has taken off in a big way and people are going to continue buying EVs regularly when the holistic and supportive ecosystem is in place. That’s where I believe India has made great progress, and the recent discoveries of Lithium reserves will be highly instrumental.”
Varun Goenka, CEO & Co-Founder, Chargeup said, “As India discovers significant lithium reserves in Rajasthan, in addition to the previously discovered reserves in Jammu and Kashmir, the country is well positioned to become the 3rd largest market for EVs in the next 4 years. Batteries, being the single largest cost and supplies dominated by China, have been a major obstacle for India’s EV industry.”
“However, with the ‘Make in India’ initiative and the discovery of lithium reserves, India is now able to reduce its dependence on foreign countries and control the fluctuating price of lithium. This development not only enables India to meet its domestic requirements but also allows it to supply lithium to other countries, creating a promising future for the country’s EV industry. The future seems #chargedup for India as it accelerates towards achieving its goal of transitioning towards sustainable energy sources while reducing its carbon footprint,” he further added.