"India to Intensify Lithium Exploration in J&K Blocks to Enhance Commercial Viability"

India’s Mines Ministry plans to intensify exploration of existing lithium blocks in Jammu and Kashmir (J&K) before putting them up for auction again. The aim is to provide more detailed information about these blocks to make them commercially viable, according to senior Ministry officials.

The exploration, set to be completed over the next six months, follows two unsuccessful auction attempts for lithium blocks in the Salal–Haimana area of the Reasi district. Both rounds failed to attract the necessary commercial interest. The first auction in November attracted fewer than the three required bidders, leading to its annulment. The blocks were re-auctioned in March, but with unsatisfactory responses, the auction was canceled once more in July.

Officials noted that industry concerns, particularly regarding resource availability, prompted the decision to conduct further exploration. The aim is to address these concerns, enhance the commercial attractiveness of the blocks, and provide more comprehensive data for future auctions. “The Ministry decided to carry out further exploration to make the blocks commercially viable and address industry concerns. We expect to have detailed information ready in another six months,” said an official.

The J&K lithium reserves, discovered in February 2023, are estimated to be the largest confirmed find in India, with inferred reserves of 5.9 million tonnes. Currently, these reserves are at the G3 stage, which involves detailed prospecting, mapping, and assessment. The new exploration efforts aim to advance these reserves to the G2 stage, providing a clearer picture of their potential.

In contrast, India recently achieved a successful lithium block auction in the Korba district of Chhattisgarh. The block was awarded to Maiki South Mining Pvt Ltd in June with a competitive premium of 76.05%, reflecting strong interest.

Of the 38 critical mineral blocks auctioned, 14 have been allocated, with some still in the bidding process. The Geological Survey of India is also ramping up efforts to explore critical minerals, including lithium, in states such as Jharkhand, Karnataka, and Rajasthan.

Lithium, often referred to as 'white gold,' is highly sought after globally, especially with India’s push towards electric vehicles (EVs). Currently, India relies heavily on imports for its lithium needs, primarily from Hong Kong and China, with imports of lithium-bearing minerals around ₹9,000 crore in FY24.

Despite its significant demand, lithium reserves are limited, with only a few countries holding substantial reserves. China, although not having the largest reserves, remains a dominant player in lithium mining and processing. India is also exploring opportunities in Argentina and other Latin American countries, as well as Africa and Australia, to secure its lithium supply.

HBL