On Thursday, the Ministry of Mines announced that the Geological Survey of India discovered 5.9 million tonnes of lithium, a metal used for making electric vehicle (EV) batteries, in Jammu and Kashmir, bringing India among the top countries across the world in terms of Lithium reserves. This announcement will have a significant impact on the industry as well as consumers, experts told Business Today.
Lithium is one of the main components used in Lithium-ion (Li-ion) cells. The cells are used for everyday electronics, power tools, electric vehicles, and electrical energy storage systems. Most of the Lithium required to meet the requirement of the industry is imported, adding to the final cost to the consumers. The discovery of Lithium in India is expected to promote domestic production of Li-ion batteries, bringing the cost of production down.
Pratik Kamdar, co-Founder of Neuron Energy, a startup working in the Li-ion and lead acid cell manufacturing space told Business Today, “The recent finding of 5.9 million tonnes of lithium in Jammu and Kashmir will significantly boost the sector.”
“Currently, India is also progressing into cell manufacturing of batteries and it will provide the much-needed impetus to the sector as it will reduce the dependence on imports while also solving the supply-chain challenges as the country will have its own reserves of lithium. There will also be a cost impact as the cells, when manufactured indigenously, will become cheaper,” Kamdar explained.
One of the most pronounced impacts of the discovery will be the reduction in the costs of EVs. Batteries are the cost drivers when it comes to EVs, and cheaper batteries would mean cheaper vehicles.
Varun Goenka, CEO and co-Founder of Chargeup, a startup working in the EV charging space told Business Today, “This will have a huge impact on the cost of batteries and make EVs more affordable for consumers. This is a major step forward for the EV industry in India, and it will help to accelerate the adoption of EVs in the country.”
Industry insiders believe that the latest discovery of Lithium in Jammu and Kashmir will prepone the net-zero carbon goal set by Prime Minister Narendra Modi. The PM pledged to bring down India’s carbon emissions to net zero by 2070 at the Glasgow climate change summit in 2021.
Pankaj Sharma, Co-Founder and Director of Log9 Materials told Business Today, “At a time when the government has been catalysing initiatives toward EV battery manufacturing and green mobility to reach its ambitious net-zero goal by 2070, the report from the Geological Survey of India about the discovery brings hope for localized production of Li-ion cells and batteries, which will also go a long way in reducing our trade deficits with the neighbouring country.”
The current battery and EV industry are heavily dependent on imported cells, mainly from neighbouring countries like China and Taiwan. The latest development is expected to bring this dependence down significantly.
Goenka noted, “This will also help reduce our dependence on China, which is a major concern for many in the current political climate.”