The central government has approved the lithium mining auction proposal, clearing the way for private companies to be able to participate.
The government has approved the Mines and Minerals (Development and Regulation) (MMDR) Act amendment. The centre has lifted the ban on mining lithium and five other minerals. Private companies will also be able to mine the six minerals.
Lithium is the lightest and softest metal in the world. Lithium can also convert the chemical energy it stores into electrical power. The metal is also non-ferrous and a critical component for electric vehicles' batteries.
India has recently discovered 5.9 million tonne worth of Lithium reserves in Jammu and Kashmir. The amount of lithium is important for the country because it can compete with the global average.
As per the present situation, 47 per cent of through world’s largest Lithium is produced in Australia, 30 per cent in Chile, and 15 per cent in China. India is dependent on lots of important imports like lithium, nickel, and cobalt and has lately been looking to strengthen its supply of key minerals, including lithium, that will be critical for furthering its electric vehicle plans.
Currently exploration activity is underway in Jammu and Kashmir’s Salal-Hamima region in Reasi, and India is hopeful of finding more lithium reserves. The secretary of the Ministry of Mines, Vivek Bharadwaj, indicated that the auction of the discovered lithium ore will likely take place in December and the ministry is working out the reserve price.
