India’s Ambitious Push to Reduce Reliance on Chinese Lithium
India is making strategic moves to reduce its dependency on China for lithium, a critical component for electric vehicle (EV) batteries and renewable energy technologies. This initiative is part of a broader effort to bolster its domestic EV industry and enhance energy security. By focusing on global partnerships and developing domestic lithium resources, India aims to create a robust and self-reliant lithium supply chain.
Global Partnerships for Lithium Processing
To achieve self-reliance in lithium processing, India has initiated discussions with several countries, including Australia, the United States, Bolivia, Japan, and South Korea. These partnerships aim to gain technical expertise and establish a robust lithium supply chain, reducing the need to rely on China, which currently controls about 60% of global lithium refining capacity.
Executives from Russia’s TENEX have also approached the Indian government, offering technology for lithium processing. This collaboration underscores India’s commitment to diversifying its sources of technical know-how and securing the raw materials necessary for its growing EV market.
Domestic Efforts and Challenges
Domestically, India has discovered significant lithium reserves in Jammu and Kashmir, estimated at 5.9 million tonnes. This discovery is seen as a major step toward achieving self-sufficiency. However, experts caution that it may take years to fully develop these resources due to the geological and environmental sensitivities of the region.
In addition to mining, the Indian government is focusing on setting up refining plants. Companies like Shree Cement are in talks with Australian firms to establish lithium refineries, which could cost between $600 million and $700 million.
Incentives and Future Outlook
India’s top policy think-tank, NITI Aayog, has recommended incentives for setting up lithium processing plants. The country’s battery industry is projected to require an annual 56,000 metric tons of lithium carbonate by 2030. To meet this demand, India needs to accelerate its efforts in both mining and refining.
Moving Forward
India’s drive to reduce its reliance on Chinese lithium involves a multifaceted strategy, combining international partnerships, domestic resource development, and technological advancements. While the journey is expected to be challenging and lengthy, these efforts are crucial for the country’s energy security and its ambitious EV goals.
By building a more resilient and self-sufficient lithium supply chain, India can better position itself in the global green energy landscape and reduce its carbon footprint.
