India to ramp up lithium exploration in existing J&K blocks to boost commercial viability

India’s Mines Ministry will be carrying out further exploration across existing lithium blocks in Jammu and Kashmir before putting them up for auction again. The idea would be to provide more details around these blocks, making them “commercially viable”, senior Ministry officials in the know told businessline.

Exploration would be completed over a six-month period.

Incidentally, two rounds of auction of the lithium blocks in the Salal–Haimana area of the Resai district in J&K have failed to elicit the expected commercial interest.

In the first round, announced in November, the blocks got less than three bidders - the minimum number required to proceed to the next stage. After annulment, they were again put up for auction in March this year. With responses still being “unsatisfactory”, the auction was again annulled in July.

• Also read: Lithium prices may come under further pressure as supplies rise

“Some concerns were raised by the industry, including resource availability. These have been noted. So, the Ministry decided to carry out further exploration on these blocks, flesh out more information, make them commercially viable for auctions, and at the same time, address industry concerns. In another six months, the details should be ready,” the official said.

Incidentally, the announcement for the discovery of the J&K lithium reserves – touted to be the largest and first-ever confirmed find in India – was made in February 2023. The inferred reserves are estimated at 5.9 million tonnes.

According to the Ministry official, the reserves in J&K are at a G3 stage – which covers prospecting of the reserves; this includes mapping on a 1:10,000 or larger scale, linking the prepared maps with the top grid, and assessment lithology, structure, surface mineralization, and analysis of old workings, etc. This stage also involves geochemical sampling rock type wise, soil survey, etc.

“Exploration will be around the G3 level, perhaps, and will take it to the G2 level or general exploration stage, thereby giving a clearer picture of the reserves,” the official said, adding that further exploration in nearby areas of J&K is also being carried out.

• Also read: India acquires five lithium blocks in Argentina

On the other hand, India’s first successful lithium block auction took place in the Korba district of Chhattisgarh. The block was auctioned to Maiki South Mining Pvt Ltd in June. The bid included a premium of 76.05 per cent, reflecting strong interest and competitive bidding.

Of the 38 critical mineral blocks put up for auction, 14 have found takers. Some are still in the bidding process.

The Geological Survey of India has upped the ante for the search for critical minerals, including lithium, across states like Jharkhand, Karnataka, Rajasthan, and others.

Popularly known as ‘white gold’, lithium is one of the most sought-after minerals globally, particularly amid the country’s push towards electric vehicles (EVs).

The country is dependent on imports for its lithium requirements, primarily from Hong Kong and China. Lithium-bearing mineral imports were around ₹9,000 crore in FY24, while lithium-ion imports are higher.

Only a handful of countries in the world have lithium reserves, whether in the form of salt brine or mines. Yet China, despite not having the largest lithium reserves, continues to dominate lithium mining and processing.

India recently acquired lithium mines in Argentina and is on the lookout across Latin American nations like Chile, as well as African nations, and Australia.