How massive Lithium reserves could charge up India’s global power ambitions?
Bhubaneswar: The discovery of huge 5.9 million tonnes of Lithium reserves in the Reasi district of Jammu & Kashmir (J&K) could be a game-changer for India and the Union Territory. It could not only lead to economic development, it could also place India as a key player in the global supply chain of the strategically important mineral.
Lithium is a critical element in modern technology and is widely used in batteries for smartphones, laptops, electric vehicles, and other electronic devices. As demand for these products continues to grow, the strategic importance of lithium reserves is increasing.
India, which is aiming to minimize its dependence on oil, has started its transition to electric vehicles (EV) rapidly. With no proved reserves of Lithium previously, it is currently a net importer of Lithium and Lithium based products like EV Batteries.
But with a huge deposit of high-quality Lithium, the entire equitation could change, and India could become self-sufficient in Lithium. It could be a real game changer for India’s global power dreams.
How the discovery is a game-changer for India:
- India could become more self-sufficient in its lithium needs, reducing its dependence on imports from other countries and improving its energy security. This could also reduce India’s exposure to geopolitical risks associated with reliance on foreign sources of critical resources.
- India could become a dominant player in the global lithium market, giving it significant bargaining power in the production and distribution of this critical resource.
- India’s economy could receive a significant boost from the development and export of lithium, as lithium is a high-value commodity with growing demand. This could create new jobs, stimulate economic growth, and increase the country’s global competitiveness.
- It could be a boost to India’s growing military Industrial base. Lithium is used in a variety of military applications, including in the production of aerospace components and as a component of military batteries. This means that, with a significant lithium reserve, India can enjoy a strategic advantage in the development of advanced military technologies. India can also attract major investments and collaborations in this strategic sector.
- Lithium-ion batteries play an important role in the transition to a low-carbon energy system. As the world moves toward renewable energy sources like solar and wind, the demand for lithium-ion batteries is expected to continue to grow. Countries that have significant lithium reserves and are able to develop a strong domestic lithium-ion battery industry are likely to benefit from this trend.
- India can also lessen its dependence on China on Lithium-Ion batteries. China is the dominant producer of lithium-ion batteries, accounting for over 70% of global lithium-ion battery production. This gives China significant bargaining power in the global lithium market, as demand for lithium-ion batteries is expected to continue to grow. But with own Lithium reserve and Industrial base, India could challenge China’s dominance.