Indian govt allows private players to mine Lithium & other key minerals

the commercial mining of lithium and five additional minerals

The Union Cabinet has given its approval for an amendment to mining laws, opening the doors for private sector involvement in the commercial mining of lithium and five additional minerals. This strategic move aims to reduce the country's dependence on imports for lithium, a crucial element in the manufacturing of electric vehicle (EV) batteries. Currently, India imports around 70% of its lithium requirements, while targeting a significant increase in EV penetration from 1% to 30% by 2030.

The amendment to the Mines and Minerals (Development and Regulation) Act removes lithium, along with titanium, niobium, tantalum, beryllium, and zirconium, from the list of atomic minerals. This change allows the central government to auction mineral concessions, enabling exploration activities ranging from reconnaissance to prospecting operations.

India and Australia have recently established the India-Australia Critical Minerals Investment Partnership, identifying five target projects, including two lithium and three cobalt initiatives. This partnership aims to develop new supply chains for critical minerals. Additionally, the Geological Survey of India (GSI) discovered 5.9 million tonnes of lithium reserves in Jammu and Kashmir's Reasi district earlier this year. Based on this finding, the GSI and the Mineral Exploration Corporation Limited (MECL) plan to conduct further exploration activities to identify lithium resources in different parts of the country.