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India’s Lithium Discovery: Will It Be A Game Changer For The EV Industry?   

India is actively working towards building sustainable mobility and has set a target of 30% EV sales by 2030. And to achieve this, the government has launched subsidy schemes, incentives, and tax rebates. For the last many years, India has depended on other countries for raw lithium and lithium-ion cells, which automatically increases the cost of EV production in India. 

The higher cost of EVs is one of the major hurdles obstructing the way for smooth EV adoption in India. Lithium is an important component used in manufacturing rechargeable EV batteries. But how can the recent discovery of lithium in Jammu & Kashmir change the whole landscape of the EV industry in India? Will it act as a catalyst for the EV revolution in India? Can India harness this opportunity to achieve its targets for 2030? In this blog, we will find out the answers to these. 

The Lithium Discovery  

India has announced the discovery of massive lithium reserves in the Salal-Haimana area of the Reasi district in Jammu and Kashmir. With an estimated 5.9 million tons of lithium resources, this discovery could change the outlook for lithium availability in the country and enhance its aspirations to become a green industrial power. Lithium is a critical mineral that is widely used in electric vehicles (EVs), battery storage, solar panels, and wind turbines, all of which are essential components of a green economy.  

Why Is This Discovery Significant For India?  

India’s lithium demand is projected to rise significantly, and the country is seeking to build self-sufficiency in this sector. Currently, India imports all of its lithium from Australia and Argentina, and 70% of its lithium-ion cell requirement from China and Hong Kong. The lithium reserves in Jammu & Kashmir could boost the domestic battery-manufacturing industry and reduce the country’s dependence on foreign imports. With this discovery, India took a great leap and now ranks sixth in terms of lithium resources, just behind the world’s top five lithium producers, including Bolivia, Argentina, Chile, United States, and Australia. 

The discovery of lithium reserves in Jammu and Kashmir is significant for India’s EV industry as it seeks to achieve its ambitious target of 30% EV penetration in private cars, 70% in commercial vehicles, and 80% in two and three-wheelers by 2030. This goal is a part of the National Mission on Transformative Mobility and Battery Storage, which aims to make India a global leader in the EV industry.  

Challenges With This Discovery  

The discovery of lithium has also brought both challenges with the opportunity as the location of the lithium reserves is hardly 30 miles away from the Line of Control (LoC). This region is politically volatile, and government authority is contested, with the Line of Control separating India-controlled Jammu and Kashmir from Pakistan-controlled Azad Kashmir. Developing these lithium resources will require significant investment and industrial development in a region where local governance challenges are prevalent.  

The lithium reserves are located in the southern Jammu region, surrounded by mountains, a river valley, and a home to half of Hindus and half of Muslims. It is a disturbed area where Hindus accuse Muslims of waging terrorist attacks and disturbing the harmony of the area with the support of Pakistan. Hence, it’s difficult to predict how the Indian government will address these challenges. Still, the government is confident that this discovery will indeed create employment in the region while expanding road and rail infrastructure and benefitting the economy of India.  


In conclusion, the discovery of lithium reserves in Jammu and Kashmir could transform India’s EV industry and help the country achieve its goal of becoming a global leader in the sector. However, the location of the lithium reserves poses significant challenges for the Indian government, which must carefully navigate local governance issues to ensure that the discovery of lithium resources benefits the region and the country as a whole. The discovery of lithium resources in Jammu and Kashmir has the potential to be a game-changer for the Indian EV industry, and its success depends on how well the government can manage the challenges and risks associated with the project. 

Also read, Electrifying the future: How electric vehicles (EVs) can propel climate change mitigation



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