Net Zero Summit

India Explores Lithium Reserves in Eight States to Boost EV Sector and Reduce Imports

The Geological Survey of India (GSI) is conducting exploration for lithium reserves in eight additional states and Union territories during the current field season (FS) 2022-2023, after the discovery of 5.9 million tonnes of inferred lithium reserves in Jammu & Kashmir.

The hunt for green energy across India assumes importance, given that the country’s electric vehicle (EV) sector is totally dependent on imports, particularly from China, for its lithium requirements.

The exploratory move to scout for lithium reserves could help India reduce its reliance on costly imports and even become an exporter in the long term.

The deposits in J&K alone form 6 percent of the world’s identified lithium resources. Assuming the global average reserve-resource ratio, the deposit could be sufficient to electrify the entire passenger vehicle and two-wheeler industry’s installed manufacturing capacity in India, says a research report by consultancy firm Jefferies.

Local sourcing of lithium will drive down the costs of batteries in the long run, which are the most expensive component of an EV and account for around 30-40% of the total EV price.