Why India Must Put Lithium Reserves To Commercial Production Shortly
The unexpected finding of 5.9 million tonnes of high-quality lithium reserves in Jammu and Kashmir has sparked a discussion about how quickly India can capitalize on this significant find to compete with China’s hegemony in the production of EVs, smartphones, and other consumer electronics.
India has been highly reliant on imported lithium-ion batteries up to this point due to a dearth of domestically produced battery cells. According to the international management consulting company Arthur D. Little, the nation imports about 70% of its battery-cell needs from China and Hong Kong.
The latest iteration of advanced storage technologies, ACC batteries stores electrical energy as an electrochemical and then transform it back into electrical energy as needed.
Consumer electronics, mobile devices, electric vehicles, advanced electricity grids, rooftop solar, etc. are some of the main industries that the ACC addresses.
The government will need to invest a significant amount of resources, including money and expertise, to turn this reserve into an economically viable resource after mining and refining it, according to industry experts.
Additionally, there will be a cost effect because the cells will be less expensive when produced domestically.
This domestic supply of lithium reserves, when combined with a supportive announcement by the government during the Union Budget 2023 on the exemption of customs duty on imports of capital goods and machinery for manufacturing li-ion cells for EV batteries, will help the EV eco-system reach the masses at reasonable and affordable costs.
By 2030, the government wants to increase EV sales in India to account for 30% of private automobiles, 70% of commercial vehicles, and 80% of two- and three-wheelers.
According to the Peterson Institute for International Economics, the discovery could help India achieve its goals of becoming a leading green industrial nation and alter the medium- and long-term prognosis for lithium availability, preventing a race between the US and China for market share.
India is reliant on getting lithium from the few nations that have the majority of the world’s lithium reserves.
Industry experts say it may take a while for India to see the benefits, but the country’s chances of reducing its reliance on nations like China appear bright in the future.
News Mania Desk
