The Biz Reporter
Srinagar, Sep 25: The government is set to auction its Jammu and Kashmir lithium reserves in the coming weeks, according to a highly informed government source. This move comes as India intensifies its efforts to secure a consistent supply of lithium, a vital component in the production of electric vehicle batteries. In a significant discovery earlier this year, India identified its first lithium deposits in the region, with an estimated reserve of 5.9 million tonnes.
The source, who requested anonymity due to the sensitive nature of these discussions, revealed that several overseas mining companies have already expressed interest in participating in the auction.
“The auction will happen soon, and some overseas miners have shown interest,” the source stated.
Additionally, the source disclosed that Khanij Bidesh India Ltd (KABIL), a state-owned joint venture tasked with sourcing minerals abroad, is in the final stages of securing lithium blocks in Argentina. KABIL was established in August 2019 with the specific goal of identifying, acquiring, developing, and processing strategic minerals overseas for use in India.
Moreover, discussions with the Chilean government are underway to explore opportunities for securing lithium blocks in the country. However, these talks are still in their early stages, and details remain to be worked out.
India, one of the world’s top greenhouse gas emitters, has been actively pursuing international partnerships to secure access to crucial minerals, especially in resource-rich nations like Australia, Argentina, and Chile. This strategic move aligns with India’s commitment to transition towards cleaner and more sustainable energy sources by promoting electric vehicles and reducing carbon emissions.
The upcoming auction of Jammu and Kashmir’s lithium reserves is anticipated to attract significant attention from domestic and international mining companies, as lithium continues to gain prominence in the global shift towards electric mobility and renewable energy. The successful auction could further strengthen India’s position in the lithium supply chain and support the nation’s efforts to promote cleaner and more sustainable transportation solutions.
