India Engages Global Partners for Lithium Mining and Processing Ventures
India is actively seeking international collaborations to support its burgeoning lithium mining and electric vehicle (EV) sectors, with a view to reducing its reliance on Chinese resources and expertise. In a strategic move to develop its domestic lithium industry, New Delhi is negotiating with several countries, including Australia, the United States, Bolivia, Britain, Japan, and South Korea, to acquire technical assistance in lithium processing.
These discussions, initiated last year, involve both government and private sector participants and are aimed at bolstering India's capabilities in mining and processing lithium—a critical component for batteries in the EV industry. Such advancements could significantly help India reduce its oil dependency and greenhouse gas emissions, aligning with its broader environmental goals.
Furthermore, executives from Russia’s TENEX, a subsidiary of the state-owned nuclear energy company Rosatom, have also approached Indian officials, proposing collaboration in lithium processing technologies. These discussions underscore India's comprehensive approach to establishing a robust supply chain for the EV industry.
India is currently preparing to auction its first mining rights for lithium blocks discovered last year in the Jammu and Kashmir region and the states of Chhattisgarh. Prominent bidders for these critical mineral blocks include major players such as Ola Electric, Shree Cement, Coal India, Vedanta Ltd, and Jindal Power, with the winners expected to be announced by July.
The selected companies will be responsible not only for mining but also for processing the lithium into concentrates or chemicals suitable for battery manufacturing. This initiative is part of India's broader strategy to become self-reliant in lithium production and processing, a critical step given the country's substantial requirements for battery materials to support its growing EV market.
The path to achieving a fully operational lithium mining and processing industry in India is expected to be challenging and prolonged, with typical timelines extending up to seven years from discovery to commercial production. Technical challenges such as ore beneficiation and advanced metallurgical processes are among the key hurdles to be addressed.
As India works towards establishing its lithium processing capabilities, there is a risk that, in the interim, lithium ores might need to be shipped overseas for processing, likely to China, which currently dominates the global lithium processing market. To counter this, India's top policy think-tank, NITI Aayog, has recommended incentives for setting up domestic lithium processing plants to meet the anticipated demand of 56,000 metric tons of lithium carbonate by 2030.
