{"id":21631,"date":"2024-02-15T15:53:41","date_gmt":"2024-02-15T10:23:41","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=21631"},"modified":"2024-02-16T12:38:42","modified_gmt":"2024-02-16T07:08:42","slug":"india-joins-the-race-for-lithium-reserves","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/15-02-2024\/india-joins-the-race-for-lithium-reserves","title":{"rendered":"India Joins the Race for Lithium Reserves"},"content":{"rendered":"\n<p><strong>Syllabus :GS 1\/Resources \/GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News&nbsp;<\/strong><\/h2>\n\n\n\n<p>It has been observed that India&#8217;s lithium discovery could transform the country .<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About Lithium&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lithium is&nbsp; a non-ferrous metal&nbsp; and is the <strong>lightest <\/strong>and the least dense of all metals.&nbsp;<\/li>\n\n\n\n<li>Being the third element in the periodic table after gases hydrogen and helium, the alkali metal lithium is highly reactive.&nbsp;<\/li>\n\n\n\n<li>It is sometimes dubbed <strong>\u2018white gold\u2019<\/strong>, in what has been called the \u201c<strong>new era gold rush\u201d.<\/strong><\/li>\n\n\n\n<li><strong>Applications : <\/strong>Lithium is a critical component used in the production of <strong>batteries for electric vehicles<\/strong>, cell phones, computers, and other gadgets.\n<ul class=\"wp-block-list\">\n<li>With its use case spanning the domains of defence, aviation and energy, it is viewed as a strategic material.<strong>&nbsp;<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Reserves : <\/strong>&nbsp;<\/h2>\n\n\n\n<p>The US Geological Survey has estimated the global resources of lithium at 98 million tonnes (mt) in 2022.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Argentina, Bolivia, and Chile,<\/strong> collectively referred to as the <strong>Lithium Triangle<\/strong>, account for roughly<strong> 53.1 percent of the global lithium resources<\/strong>.\n<ul class=\"wp-block-list\">\n<li>The global production of lithium in 2022 was estimated at 130 thousand tonnes with<strong> Australia being the largest producer<\/strong> followed by Chile, China and Argentina<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Importance for India&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s rising energy demands have placed a significant emphasis on securing sustainable and clean energy resources.<\/li>\n\n\n\n<li>India has set an ambitious target of achieving a <strong>500 GW capacity <\/strong>of<strong> non-fossil fuels-based energy<\/strong> and reducing CO2 emissions by 1 billion tons by 2030.\n<ul class=\"wp-block-list\">\n<li>&nbsp;Lithium-ion batteries are used in wind turbines, solar panels, and electric vehicles, all of which are crucial in a green economy.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Therefore significant<strong> increase in electric vehicle adoption<\/strong> is required to achieve this goal&nbsp; .<\/li>\n\n\n\n<li>\u200b\u200bCurrently, India is completely import-dependent for minerals like lithium, nickel, and cobalt.\n<ul class=\"wp-block-list\">\n<li>Presently, the two blocks of lithium reserves, one each in Jammu and Kashmir and Chhattisgarh, are up for auction for a composite licence.\n<ul class=\"wp-block-list\">\n<li>Exploration is planned in Madhya Pradesh, Gujarat, Chhattisgarh, Karnataka, Jharkhand, Andhra Pradesh\/ Telangana, Goa, West Bengal and Rajasthan.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges and Concerns&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Environmental :&nbsp; <\/strong>Lithium mining is <strong>resource-intensive<\/strong>, and the mineral waste produced can further p<strong>ollute water and soil,<\/strong> affecting local inhabitants, agriculture, and biodiversity and releases considerable air pollution.&nbsp;<\/li>\n\n\n\n<li><strong>Technological : <\/strong>India currently has a limited presence in the global supply chain for Advanced Cell Chemistry (ACC) technologies.\n<ul class=\"wp-block-list\">\n<li>India also does not have lithium extraction technologies.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Competition with China&nbsp; : <\/strong>According to the International Energy Agency, China\u2019s share of processing is close to 60 per cent for lithium.\n<ul class=\"wp-block-list\">\n<li>China has made significant investments in overseas assets in Australia, Chile, DRC, and Indonesia.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Cost of refining lithium<\/strong> in which India has yet to gain experience.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Steps of India&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Global corporations : <\/strong>India leverages<strong> diplomatic ties<\/strong> for strategic mineral collaborations with resource rich countries .\n<ul class=\"wp-block-list\">\n<li>India signed an <strong>MoU with Australia\u2019s Critical Minerals Facilitation Office (CMFO<\/strong>) in June 2020, followed by a detailed agreement in March 2022.\n<ul class=\"wp-block-list\">\n<li>This partnership, backed by a joint investment commitment of $6 million with equal partnership, focuses on joint due diligence for lithium and cobalt assets in Australia<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>India joined the <strong>Mineral Security Partnership (MSP)<\/strong> in June 2023, becoming the<strong> 14th member <\/strong>alongside countries like the <strong>US, UK, Canada, Australia, South Korea, and Japan.&nbsp;<\/strong><\/li>\n\n\n\n<li>In January 2024 ,<strong>India Signed&nbsp; Agreement<\/strong> for Lithium Exploration &amp; Mining Project in <strong>Argentina<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Domestic : <\/strong>The government has introduced the <strong>Production Linked Incentive Scheme for the \u2018National Program on Advanced Chemistry Cell (ACC) B<\/strong>attery Storage\u2019 with an outlay of \u20b918,100 crore, with the goal of achieving a manufacturing capacity of 50 GW Hour of ACC battery storage\n<ul class=\"wp-block-list\">\n<li>In July 2023<strong>, the Mines and Minerals (Development and Regulation) (MMDR) Act 1957 <\/strong>was amended through the MMDR Act 2023 to increase exploration and mining of critical minerals with an objective to achieve self-sufficiency.&nbsp;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion and Way Forward&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Today, lithium is an essential part of virtually all electric vehicle batteries and those used in consumer electronics.&nbsp;<\/li>\n\n\n\n<li>India needs a two-pronged approach to developing its lithium capabilities. On one hand, it needs to tackle the technical hurdles, and on the other, it needs to manage the socio-environmental impact of these activities.<\/li>\n\n\n\n<li>India may need to devise a strategic funding mechanism for co-financing projects to secure strategic minerals like lithium in order to support domestic manufacturing of batteries necessary for the growth of the EV ecosystem.<\/li>\n\n\n\n<li>Besides domestic exploration, India needs to bolster its<strong> international engagements<\/strong> and undertake<strong> joint exploration activities<\/strong> for ensuring uninterrupted access to these critical minerals\n<ul class=\"wp-block-list\">\n<li>India could learn from the experiences of South American countries, especially the \u2018lithium triangle\u2019 of Bolivia, Chile, and Argentina<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>In conclusion, India&#8217;s recent discovery of lithium reserves is a significant step towards achieving energy security and environmentally friendly transportation.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Mains Practice Question&nbsp;<\/strong><br><strong>[Q] <\/strong>&nbsp;With the global impetus towards renewable energy and the electrification of transportation, the importance of lithium as a key component has become paramount.In light of the above statement ,Discuss the challenges faced by India&nbsp; in&nbsp; Lithium mining and exploration.<strong> <\/strong>Suggest measures to be taken for facing these challenges.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2024\/02\/Daily-Editorial-Analysis-15-02-2024.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Syllabus :GS 1\/Resources \/GS3\/Economy In News&nbsp; It has been observed that India&#8217;s lithium discovery could transform the country . About Lithium&nbsp; Reserves : &nbsp; The US Geological Survey has estimated the global resources of lithium at 98 million tonnes (mt) in 2022.&nbsp; Importance for India&nbsp; Challenges and Concerns&nbsp; Steps of India&nbsp; Conclusion and Way Forward&nbsp; [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-21631","post","type-post","status-publish","format-standard","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/21631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=21631"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/21631\/revisions"}],"predecessor-version":[{"id":21659,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/21631\/revisions\/21659"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=21631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=21631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=21631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}