India to auction newly found lithium reserve

NEW DELHI, March 13 (Reuters) - India's northern federal territory of Jammu and Kashmir will auction a lithium block discovered last month, the country's mines minister said in parliament on Monday.

"The exploitation of lithium will depend upon successful auction of the mineral block," minister Pralhad Joshi said, adding the timeline for an auction would be decided by Jammu and Kashmir authorities.

The block, with estimated reserves of 5.9 million tonnes, is the first known lithium reserve in the country. 

SOURCE: REUTERS 

 The discovery of a lithium reserve in India comes as a major boost to the country's efforts towards achieving a more sustainable and renewable future. Lithium is a key component in the production of batteries used in electric vehicles, which are increasingly being seen as an important part of India's plan to reduce carbon emissions and move towards cleaner transportation. 

The Jammu and Kashmir authorities are likely to generate significant interest from domestic and international companies interested in acquiring the lithium block. This auction could prove to be a lucrative opportunity for investors to participate in India's growing clean energy sector, which is expected to receive significant government support in the coming years. 

The Indian government has set a target of 30% electric vehicle adoption by 2030, as part of its broader efforts to reduce greenhouse gas emissions and combat climate change. The successful exploitation of the newly discovered lithium reserve will be crucial in achieving this target, as the country currently imports the majority of the lithium used in battery production. 

While the discovery of a lithium reserve is undoubtedly positive news for India, there are concerns over the environmental impact of lithium mining and extraction. The Jammu and Kashmir authorities, along with potential bidders, will need to ensure that the exploitation of the lithium reserves is done in a responsible and sustainable manner that does not harm the environment or local communities. This will require careful planning, monitoring and implementation of environmental and social safeguards.