Days after the Geological Survey of India (GSI) found 5.9 million tonnes of lithium reserves in Jammu and Kashmir, the Central authorities is ready to ask bids for the public sale of the nation’s first Lithium reserve.
According to a Mint report, the bids will probably be invited by the centre within the first quarter of June this yr.
This comes after the Geological Survey of India, for the primary time discovered Lithium inferred assets (G3) of 5.9 million tonnes within the Salal-Haimana space of Reasi District of Jammu & Kashmir earlier this month.
Citing a authorities official, Mint reported that like another authorities public sale, this may even be open to all, with one key situation: “The government will mandate that lithium is refined only in India and not sent abroad for processing.”
It is pertinent to notice that India doesn’t have a Lithium refining facility. The Modi authorities, then again, has already set a goal of getting EV gross sales account for 30% of personal cars, 70% of economic autos, and 80% of two- and three-wheelers by 2030, citing an pressing have to decarbonize the transportation sector.
Back in 2021, Nitin Gadkari, the Union Minister for Road Transport and Highways, said that India would be capable to scale back its consumption of crude oil by 156 million tonnes, or Rs 3.5 lakh crore, if electrical car penetration reached 40% within the two-wheeler and automotive phase and near 100% within the case of buses by 2030.
UNFC classification
Notably, the United Nations Framework Classification (UNFC), a three-dimensional strategy that takes geological, feasibility, and financial concerns into consideration, is used to research the evaluation of the mineral concession. The 4 phases of the geological axis are reconnaissance (G4), prospecting (G3), common exploration (G2), and detailed exploration (G1).
According to UNFC, the G3 class or inferred useful resource is described as quantities related to a acknowledged deposit that may be approximated with a low diploma of confidence. Resources that may be approximated when it comes to amount, grade, or amount based mostly on geological proof, sparse sampling, and fairly presumed, however unconfirmed, geological and grade continuity is known as inferred assets.
Lithium- ‘White Gold’
Lithium is a delicate, silvery-white steel that has earned the moniker “white gold” as a result of its nice demand within the international vitality markets. Lithium serves a wide range of functions and is a vital a part of the electrochemical cells used within the batteries for electrical autos, laptops, smartphones, and different digital devices.
The discovery of a lithium useful resource in Jammu and Kashmir will help India meet its targets of reducing emissions and reaching web zero by 2070. This might be achieved by offering Lithium, an important part for electrical automotive batteries.
It is value noting that whereas “reserves” are a subset of assets which might be economically viable to extract, “resources” refers to an approximate amount of a geological commodity in found and undiscovered deposits.
According to International Energy Agency (IEA), the world may face a Lithium scarcity by the yr 2025. Amidst a big rise in demand for electrical autos, India can play a vital position by addressing the worldwide shortages.
As per a World Economic Forum (WEF) report, Lithium provide is constrained not simply by rising demand but additionally by assets concentrated in a number of areas and the truth that greater than half of present manufacturing takes place in areas with vital water stress. Notably, the “Lithium Triangle” nations of Argentina, Bolivia, and Chile maintain an estimated 60% of worldwide lithium reserves.
According to a report by the Central Electricity Authority (CEA), India would have a battery storage capability of 27,000 Megawatts by 2029–30. If India manages to cope with the challenges forward, this discovery of the Lithium reserve can show to be a game-changer for India.