The administration plans to conduct an auction of lithium reserves located in Jammu Kashmir in the coming weeks, Reuters reported.
This move comes as India seeks to ensure a stable supply of lithium, a crucial raw material essential for manufacturing electric vehicle batteries.
In February, India discovered its initial lithium deposits in Jammu Kashmir, estimating the reserves to be approximately 5.9 million tonnes.
The source mentioned that the auction is imminent, and there has been interest from foreign mining companies. However, due to the sensitive nature of these discussions, the report quoted government source as saying.
When contacted, the federal mines ministry had not yet responded to a request for comments from Reuters.
Furthermore, the source disclosed that KABIL (Khanij Bidesh India Ltd), a state-owned joint venture established to explore mineral resources abroad, is in the final stages of securing several lithium blocks in Argentina.
Discussions are also underway with the Chilean government regarding the acquisition of lithium blocks, although these talks are still in their early phases.
India, as one of the world’s leading greenhouse gas emitters, has been actively pursuing international agreements to secure essential minerals in resource-rich nations such as Australia, Argentina, and Chile.
In July, the central Government passed a bill to allow the private sector to mine six atomic minerals, including lithium, and deep-seated minerals like gold and silver was approved by the Lok Sabha.
The Mines and Mineral (Development and Regulation) Amendment Bill, 2023 was passed by the Lok Sabha through a voice vote, amid continuous sloganeering by Opposition members over the Manipur issue.
The bill seeks to allow the private sector to mine six out of 12 atomic minerals. Under the existing act, all 12 atomic minerals are reserved for mining and exploration by state-owned entities.
The atomic minerals opened for private sector exploration were lithium (used in the manufacture of batteries in electric vehicles, and other energy storage devices), beryllium, niobium, titanium, tantalum, and zirconium.