Lithium Found In India: How It Can Be A Gamechanger For Startups?

The Geological Survey of India (GSI) has announced the discovery of lithium and gold deposits across 51 mineral blocks in various states across India. The discovery of lithium inferred resources in the Salal-Haimana area of Reasi District of Jammu & Kashmir by the GSI is the first of its kind in the country.

Good News for Startups

The discovery of lithium reserves is excellent news for startups in India, particularly those working in the electric vehicle and battery manufacturing sector. The electric vehicle industry is expected to grow significantly in the coming years, and with India's emphasis on electric mobility, the discovery of lithium reserves will provide a significant boost to startups working in this sector.

Moreover, with the availability of lithium in the country, the production costs for batteries and electric vehicles will be significantly reduced, making it easier for startups to compete in the global market. Startups will also have the opportunity to work with the government to explore the reserves and develop new technologies for mining and processing of lithium.

Boost to the Economy

The discovery of lithium and gold deposits is a significant milestone for the country's economy. With the rapid growth of the electric vehicle market and the increasing demand for lithium-ion batteries, the global demand for lithium is expected to increase significantly in the coming years. The availability of lithium reserves in India will significantly reduce the country's reliance on imports, making it a significant milestone for the country's economic growth.

Furthermore, the mining sector in India has been striving to reduce the country's dependence on imports for critical minerals. The discovery of lithium and other minerals in 51 mineral blocks spread across 11 states will not only provide a significant boost to the country's mining sector but will also create new job opportunities and improve the socio-economic conditions of the regions.

Gamechanger for the Mining Sector

The discovery of lithium inferred resources and other minerals in India is a game-changer for the country's mining sector. The mining sector has been struggling to reduce the country's dependence on imports for critical minerals, and the discovery of these reserves is a step in the right direction.

The discovery of lithium and gold reserves will provide a significant boost to the country's mining sector and create new job opportunities in the industry. It will also attract foreign investment and promote the development of new technologies for mining and processing of lithium.

Golden Opportunity For EV Startups! 

Lithium could be a significant opportunity for the EV sector in India, as the country faces challenges in the EV ecosystem, such as insufficient raw material availability and a delayed entry into the technology sector. The recent discovery of lithium resources could help allay the first challenge in due course. As the global EV market rapidly grows, with a significant increase in EV sales in 2022, demand for lithium batteries is expected to increase to over 4 TWh by 2030.

EVs are primarily powered by lithium batteries, with demand at 473 GWh in 2022. Battery manufacturers are aiming to increase capacity to over 6 TWh, with major suppliers such as CATL, LG, and Tesla planning to raise their capacities significantly. The batteries used in EVs primarily use two chemistries: lithium iron phosphate (LFP) and lithium nickel manganese cobalt oxide (NMC). LFP batteries are durable and heat-resistant but occupy more space, while NMC batteries are more compact but less heat-resistant. LFP batteries are also 30% cheaper.

The Indian government is taking steps to promote EV development by offering a production-linked incentive scheme and subsidizing the end product under the FAME India Phase-II scheme. However, the cost of EVs in India is still higher compared to traditional vehicles. The discovery of lithium resources in India could help in reducing the cost of EVs by reducing the reliance on imported LiON cells.