In a significant development for the mining sector, the government is poised to commence the extraction of lithium, often referred to as ‘white gold’, from its soil for the first time. This rare metal, crucial for the production of rechargeable batteries, has been discovered in several states, with initial mining set to begin in Chhattisgarh.
The Geological Survey of India (GSI) identified substantial lithium deposits in Jammu and Kashmir, Karnataka, Chhattisgarh, and Rajasthan, with potential reserves also found in Bihar, Andhra Pradesh, Odisha, and Gujarat. The most immediate development will take place in the Katghora area of Chhattisgarh’s Korba district, approximately 200 kilometres from Raipur.
The announcement was made during a meeting of the National Mineral Exploration Trust on August 12 in Delhi. GSI confirmed lithium concentrations ranging from 10 to 2,000 parts per million (ppm) across approximately 250 hectares in the Katghora region.
State health minister Shyam Bihari Jaiswal, representing CM Bhupesh Baghel, expressed optimism about the state’s new role in advancing the country’s development goals. With the start of lithium mining, Chhattisgarh will emerge as a key player in our vision for a developed India by 2047, Jaiswal stated.
Lithium, a critical mineral, is essential for manufacturing batteries used in electric vehicles (EVs), mobile phones, laptops, and other electronic devices. As the global demand for these products surges, lithium’s importance has become increasingly apparent.
In addition to Chhattisgarh, lithium reserves have also been found in Jammu and Kashmir’s Salal-Haimana area, which ranks as the seventh largest lithium reserve globally. Karnataka’s Mandya district holds approximately 14,100 tonnes of lithium, and Rajasthan’s Degana region has also reported reserves.
The discovery of these reserves could significantly impact global lithium dynamics, currently dominated by countries such as Chile, Australia, and Argentina. China, the largest producer of lithium-ion batteries, controls 77% of the global market, while India, which imports most of its lithium, stands to benefit from reduced costs and increased self-sufficiency.
With domestic lithium production, India aims to meet 80% of its lithium needs, potentially lowering the cost of electronic goods and fostering the growth of local lithium and battery export industries. Presently, we import lithium worth over one billion dollars annually, with the price of one ton in China approximately Rs 51,19,375.
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