India's Ministry of Mines last week announced the largest discovery of Lithium reserves in the country so far, around 5.9 million tonnes, in Jammu and Kashmir’s Reasi district. Lithium is the key component in manufacturing batteries for electric vehicles.
The Indian EV industry is of the view that this discovery represents the much needed boost that electric vehicles require by reducing the dependence on imported goods and the cost of manufacturing subsequently.
According to Pratik Kamdar, Co-Founder, Neuron Energy, "Coupled with a favorable announcement by the Government of India during Union Budget 2023 on the exemption of Customs Duty on imports of capital goods and machinery for manufacturing of li-ion cells for EV batteries, this indigenous supply of lithium reserves will help the EV eco-system reach the masses at reasonable and affordable costs."
The discovery 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.
“The recent announcement of local discoveries of lithium reserves presents an opportunity for India to secure these critical materials and reduce dependency from abroad. For a successful EV industry, an equally successful battery supply chain is needed,” noted Ankit Mittal, CEO, Sheru.
According to Pankaj Sharma, Co-Founder and Director of Log9 Materials, “India has been dependent on other countries for Li-Ion batteries and other EV components. Lithium being one of the core elements of the Li-Ion batteries and taking into consideration the financial impact of sourcing Lithium, the recent discovery does come in as a new lease of life as it further enables India’s ambition to become self-sufficient in its energy storage needs.”
The discovery also brings hope for localized production of Li-ion cells and batteries, which will go a long way in reducing our trade deficits with the neighboring country.
“The discovery of new lithium reserves in India could reduce India's dependence on imported lithium and potentially lower the cost of EV batteries. This could make EVs more affordable for Indian consumers and help to accelerate the adoption of EVs in the country. However, it is important to note that developing these reserves into a viable source of lithium will likely take time and significant investment,” noted
Additionally, increased production of lithium in India could create new job opportunities and boost the country's economy.
According to Vikram Handa , Managing Director, “85 per cent of the world’s lithium reserves are in Australia, Chile and Argentina. With this recent discovery, India has also marked its presence on the global lithium reserves map. This is an opportunity for India to enable the atma-nirbhar vision for battery materials. Using these reserves, we can develop cleaner and more efficient energy storage solutions, revolutionizing how we power our world.”
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