J&K’s Lithium Reserves

February 15, 2023

Context:

The Geological Survey of India has found “5.9 million tonnes inferred resources of lithium” in the Salal Haimana area of Reasi district, Jammu & Kashmir, which is seen as positive development for India’s Shift towards a greener economy.

Inferred Resources: The term ‘inferred’ refers to the ‘preliminary exploration stage’, the second of a four step process, according to the Mines and Minerals (Development and Exploration) Act 1957.

Significance of Discovery:

Importance of Lithium Ion batteries in Green economy: They are used in wind turbines, solar panels, and electric vehicles, all of which are crucial in a green economy.
Rising Demand of Critical Metals: A World Bank study suggests that the demand for critical metals such as lithium (Li) and cobalt is expected to rise by nearly 500% by 2050.
India’s Dependenc on import of Lithium: As India currently imports all of its Li from Australia and Argentina and 70% of its Li-ion cell requirement from China and Hong Kong, the lithium reserves in J&K could boost the domestic battery manufacturing industry.
- India’s market is projected to register a CAGR of 23.76% by 2028. India is seeking to secure its critical mineral supplies and build self-sufficiency in this sector.
Potential of J&K Reserve to Boost Domestic Industries: The J&K reserves will also help advance the Indian government’s ambitious plan of “30% EV penetration in private cars, 70% for commercial vehicles, and 80% for two and three wheelers by 2030 for the automobile industry.”
They will strengthen India’s National Mission on Transformative Mobility and Battery Storage as well.

Challenges:

Geostrategic Concerns:

- Critical mineral dependencies constitute a major geostrategic concern in the transition to net-zero carbon energy systems.
- China currently controls 77% of the global lithium ion battery manufacturing capacity and is home to six of the world’s 10 manufacturing companies.
- India’s security considerations are heightened due to growing geopolitical rivalry with China.
- The Union territory of J&K has been the site of historical cross border tensions between India and Pakistan, domestic insurgency, and terrorism.
- Meaningful engagemnet of local populace in Li extraction project is crucial to avoid the new frontiers of social conflict.
Environmental Effects:
- The process of extracting lithium from hard rock mines involves open-pit mining, which can have significant environmental consequences such as water depletion, water contamination, diminished biodiversity, and air pollution.
- For every tonne of lithium extracted, 170 cubic meters of water are consumed, and 15 tonnes of CO2 are released, adding to the greenhouse gas emissions that contribute to climate change.

- The Himalaya, unlike the stable lithium bearing continental rocks of Australia, is the youngest mountain range in the world and is much more unstable (as evidenced by land sinking in Joshimath).

- In the densely populated context of India, the socio environmental effects of mining are likely to be far worse than they have been in Australia and likely comparable to lithium extraction in South America.

Way Forward:

Learnings from South America: India could learn from the experiences of South American countries, especially the ‘lithium triangle’ of Bolivia, Chile, and Argentina, which contain roughly half the world’s known Li.
- In Bolivia and Chile, Li extraction has been either in the hands of the state or requires mining companies to enter into a contract with state owned companies.
Involvement of local Communities: The plans for Li exploration should involve local communities, who should also be prioritized for jobs in exploration and mine development.
Effective use of Li reserves for renewable energy transition: The most effective use of Li reserves should be for the most important parts of the renewable energy transition, which would also aid the goals of addressing energy poverty and sustainable development.
To these ends, reducing luxury consumption and promoting public transport should also be an important part of the agenda of a just transition.

Additional Information:

What safeguards does India’s mining sector have?

In recognition of the local effects of mining, in 2015, the Lok Sabha amended the Mines and Minerals (Development and Regulation) Act 1957 to establish the ‘District Mineral Foundation’ (DMF).
The DMF is a nonprofit statutory ‘trust’ for every Indian district affected by mining related operations that should “work for the interest and benefits of persons, and areas affected by mining related operations”.
However, in practice, the DMFs have become sites of centralized bureaucratic control, without meaningful public participation or accountability.
A CAG audit in May 2022 noted that the District Collectors of Bokaro, Dhanbad, and Ranchi incurred an expense of ₹1,568.04 crore from DMF funds, without identifying the areas affected by mining or a list of affected people.
The auditors were denied access to documents related to the functioning of the State Level Monitoring Committee.