India announced on Thursday that 5.9 million tonnes of lithium reserves have been found in Jammu and Kashmir (J&K).
According to the Geological Survey of India, Lithium deposits have been found for the first time in India.
Why is this discovery of lithium in India a big deal?
India currently relies on imports to meet its lithium demand. The discovery of lithium reserves is significant progress in advancing its electric vehicle plans.
Due to its widespread usage, lithium is also known as “white gold”. It’s one of the key components in EV batteries along with nickel and cobalt. Not only in EVs, but lithium is also required for batteries in gadgets like laptops and mobile phones.
With limited supply and rising prices, lithium has become a key commodity in the world
But lithium resources are concentrated in a few places which can barely keep up with its demand. The International Energy Agency (IEA) says that the world could face lithium shortages by 2025.
China dominates the lithium-ion batteries market with roughly 60% of the world’s lithium chemical supply. According to the IEA, China also produces three-quarters of all lithium-ion batteries.
India plans to position itself as an electric vehicle supply chain alternative. But India has only a fraction of the raw materials needed to meet its demand for lithium-ion batteries. This discovery will help India to wean itself off its dependence on China for crucial battery materials.