Auction of lithium reserves in India to start by June: Report

The GSI had for the first time found lithium inferred resources of 5.9 million tonnes in Jammu and Kashmir

The Narendra Modi government is all set to invite bids for the auction of India's first lithium reserve in Jammu and Kashmir.

Recently the Geological Survey of India (GSI) discovered 5.9 million tonnes of lithium reserves in Jammu and Kashmir.

A report in the Mint said that the bids will be invited by the Centre in the first quarter of June this year.

The GSI had for the first time found Lithium Inferred Resources (G3) of 5.9 million tonnes in the Salal-Haimana area of Reasi District of Jammu and Kashmir, earlier this month.

The report while citing a government official said that like any other government auction, this will be open to all, with one condition."The government will mandate that lithium is refined only in India and not sent abroad for processing."

It should be noted that India does not have a lithium refining facility.

China controls 75 per cent of the world's lithium refining and India secures lithium from Hong Kong, US and China. The ongoing Russia-Ukraine war has disrupted supply and spiking costs. GSI, a consortium of-National Aluminium Co., Hindustan Copper and Mineral Exploration Corp. is working to provide a vehicle for research and development for recycling, acquisition and joint manufacturing of lithium-ion batteries.

The Modi government has set a target of having EV sales accounting for 30 per cent of private automobiles, 70 per cent commercial vehicles and 80 per cent of two-and three wheelers by 2030. The government has cited an urgent need to decarbonise the transportation sector.

In 2021, Union Minister for Road Transport and Highways, Nitin Gadkari had said that India would be able to reduce its consumption of crude oil by 156 million tonnes, or 3.5 lakh crore, if the penetration of electric vehicles reached 40 per cent in the two-wheeler and car segment and close to 100 per cent in the case of buses by 2030.UNFC says that the G3 category of inferred resource is described as amounts associated with a recognised deposit which can be approximated with a low degree of confidence.

Resources that can be approximated in terms of quality, grade , or quantity based on geological evidence, sparse sampling and reasonably presumed, but unconfirmed, geological and grade continuity is referred to as inferred resources.