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Published: May 16, 2023
Updated: May 16, 2023

"Lithium Reserves in Rajasthan Boost India's Electric Vehicle Industry"

In a significant development for India's electric vehicle (EV) industry, new lithium reserves have been discovered in Rajasthan, following a previous find in Jammu and Kashmir. The Rajasthan reserves, reported to be larger than those in Jammu and Kashmir, have the potential to meet approximately 80% of India's lithium demand. This discovery marks a crucial milestone for the country, as previously only a small reserve had been found in Karnataka. With lithium being a crucial component in EV batteries, the government's focus on rare earth minerals has intensified in its pursuit of bolstering domestic reserves.

Lithium Reserves in Jammu and Kashmir:

Earlier this year, lithium reserves were first discovered in Reasi, Jammu and Kashmir. This breakthrough marked the first significant mineral find in India. However, the recent discovery in Rajasthan's Degana region has surpassed the earlier find in terms of quantity.

Significance of Rajasthan's Lithium Reserves:

Rajasthan's lithium reserves hold tremendous potential for India's economy and EV industry. The substantial quantity of lithium present in Rajasthan can meet a significant portion of the country's demand, making it a valuable resource. This discovery aligns with India's ambitious goal of increasing EV penetration by 30% by 2030.

Implications for India's Electric Vehicle Industry:

The growth of the EV industry in India hinges on a reliable supply of lithium, given its pivotal role in battery production. With the majority of lithium reserves concentrated in South America and China currently controlling 75% of lithium refining, India has been striving to establish its own reserves. The recent discoveries in Jammu and Kashmir and Rajasthan provide a boost to the country's efforts to become self-sufficient in lithium, reducing dependency on imports.

Economic Impact and India's EV Transition:

The availability of lithium reserves in Rajasthan will have a transformative effect on India's economy. As the country aims to transition to a greener and more sustainable transportation sector, a robust domestic supply of lithium becomes crucial. With only a little over 1% of all vehicle sales in India currently comprising electric vehicles, the development of reliable lithium reserves will accelerate the adoption of EVs. This, in turn, will create opportunities for the growth of associated industries, such as battery manufacturing, leading to job creation and economic prosperity.

The discovery of significant lithium reserves in Rajasthan marks a turning point for India's EV industry. With the potential to meet a substantial portion of the country's lithium demand, this breakthrough enables India to strengthen its position in the global EV market. By reducing reliance on imports and establishing a robust supply chain for lithium, India can drive the transition to electric vehicles, reduce carbon emissions, and pave the way for a sustainable and prosperous future.