Apr 09, 2024
INDIA'S LITHIUM SUPPLY CHAIN DEVELOPMENT
Why is lithium important for India?
Lithium is crucial for India’s transition to green energy and its future economic growth, serving as a key component in battery technology for electric vehicles and renewable energy storage solutions.
What challenges does India face in securing lithium supplies?
India's main challenge is its 100% dependency on imports, particularly from countries like China, which dominate lithium refining and reserves. This dependency creates strategic vulnerabilities for India's supply chain.
How is India addressing its lithium supply chain development?
India is leveraging both public and private sectors to enhance lithium supply chain development. This includes identifying and auctioning lithium mines, liberalizing mining policies, offering incentives for exploration, and focusing on research and innovation.
What recent discoveries have been made regarding lithium in India?
In 2023, new lithium reserves were discovered in Jharkhand, Rajasthan, and Jammu and Kashmir, attracting attention from both government and private entities.
What policy changes has India implemented to support lithium supply chain development?
The Indian government has eased mining processes, allowing private players to mine lithium and auctioned critical mineral blocks, including lithium, to boost mining operations.
What incentives is the Indian government offering for lithium exploration and mining?
The government announced an incentive of 25% of approved project costs for public and private companies to support mineral exploration and is considering banning the export of critical minerals, including lithium.
How is India building its electric vehicle ecosystem with lithium?
India is pushing for the development of its electric vehicle sector with lithium as a core component, backed by a Rs 18,000 crore Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells development.
What steps is India taking to reduce dependency on China for lithium supplies?
India is developing international partnerships, securing lithium agreements with countries like Argentina and Australia, and discussing technology development with the United States to diversify and secure its lithium supply chain.
What are India's long-term goals with its lithium strategy?
India aims to reduce strategic vulnerabilities, support its green energy transition, and achieve its goal of net-zero emissions by 2070 through a robust, diversified lithium supply chain.
How can India strengthen its position in the global lithium supply chain?
India should incentivize private mining and startups in lithium exploration, partner with like-minded countries, and leverage international frameworks to enhance lithium supply chain management and reduce dependencies.
SRIRAM's
