Lithium reserves: Is there hope left for India’s stalled ‘white gold’ rush?

Back in the '90s, a team of Indian geologists looking for bauxite in Jammu & Kashmir (J&K) discovered deposits of lithium. It’s a rare earth element (REE) without which anything from mobile phones to electric vehicles will not work. In fact, so much in demand equally because of the multiple new age use cases as well as the fact that it is available only in a clutch of countries, leading to it being billed ‘the white gold’ in recent years.

But back then, guess what the discoverers did with it?

Nothing. They logged it in and ignored it.

That was because back then, bauxite was the one in demand, being a key raw material going into the making of aluminium. And lithium was in the fringe of the spectrum, at best used to treat certain illnesses, and ignored otherwise because of its toxic nature.

Cut to present day, India’s quest for escaping lithium dependency is almost like a Bollywood flick — a desperate situation where you are left at the mercy of a villainous neighbour, then a flicker of hope of empowerment, followed by dismay and disillusionment, as it still awaits a happily ever after.

To put it in plain speak, attention again turned to the lithium deposits in J&K two years ago, when Geological Survey of India (GSI) declared that nearly 6 million tonnes of G4 stage lithium could be present there. Considering the immense demand for the metal in making electric cell batteries, the government immediately declared that the mining will be auctioned for private players.

Failed auctions

But disappointment awaited India’s lithium self-sufficiency plans. Two rounds of auctions failed to attract bidders, with the industry voicing its concern — there may not be enough deposits for meaningful extraction, the process will be cumbersome, local situation in Kashmir being sensitive adds to the risk factor, and perhaps most of all — industry estimates that it will take even up to 16-17 years before one could end up with any industry-grade lithium from the site.

With no private bidders, the government went back to the drawing board, with GSI conducting more lithium exploration projects (nobody was looking at bauxite that much anymore!), with the Ministry of Mines providing funding.

Meanwhile, India's fast-burgeoning electric vehicle segment, where lithium is the key ingredient that goes into batteries, survives on a lifeline from China, the world has not only one of the most sizeable reserves of lithium, but has a chokehold on the processing of it. A tap which, considering the present fragile geopolitical situation in the world, it can turn on and off at will.

Recycling lithium

That leaves the only option India is left with — salvage whatever lithium India has by recycling the lithium already present in finished products ranging from mobile phones to electric two-wheelers.

“Lithium, rare earth magnets, cobalt even, everything is imported, we don't have mines in India. But we have the scrap, the waste because of the consumption of all the EV batteries as well as consumption (in) electronics — the product is already there in India, we just need to recycle, extract it back and put it into the manufacturing phase,” says Prassann Daphal, CEO of Recyclekaro. He should know, for the company is one of the few recognised firms in the country trying to extract lithium and other such rare metals and make use of them.

“We have enough waste which can at least reduce (India’s) import by 30% of the raw material, like lithium, cobalt etc.,” added Daphal, “So, this makes it important as a recycler that we have more flexibility with policies, funding or the subsidies available, so that more recyclers can come and support the increasing demand of these metals within India itself.”

The government has woken up to the dire need, and shortage, of RRE’s like lithium. On one level, the National Critical Mineral Mission has an outlay of 1,500 crore, though industry sources this is a fraction of the nearly 35,000 crore budget requirement by the end of this decade. This year’s budget had also allocated 500 crore rupees for R&D in the area, primarily operating through a few IITs as well as a few private sector circular economy firms.

Ties with China

On the other level, India is also extending its hand to China for a thaw in relationship considering our dependency on the People’s Republic in this matter at least for the foreseeable future. It has also not stopped India from showing extra interest in countries with lithium deposits, like Argentina with which it has forged a strategic partnership, as well as pursuing trade agreements with the likes of Chile and Peru, both with significant RRE deposits.

But while firms like Recyclekaro claim that the lithium they extract is battery-grade, the fact remains that they go into industries like paints and lubricants, with virtually all EV and batteries in the country getting their lithium from abroad, in most cases, from China.

Silver lining

Meanwhile, there is a silver lining in the horizon. Earlier this year, GSI announced it has noticed the presence of lithium in parts of Odisha. With the J&K fiasco fresh in their minds perhaps, there is no screaming from the rooftops this time, with bureaucrats in Odisha as well as the centre opting for more exploration to ascertain the validity and feasibility of what they may or may not have discovered this time.