A lot of excitement has been generated with the discovery of lithium reserves in India. On the 9th of February, the Ministry of Mines in a statement said that “Geological Survey of India for the first time established Lithium inferred resources (G3) of 5.9 million tonnes in the Salai –Haimana area of Reasi district of Jammu and Kashmir” The Ministry handed over this report along with 15 other resource bearing geological reports and 35 geological memoranda, to state governments, during the 62nd Central Geological Programming Board.
As the world readies to move away from fossil fuel and its derivatives, lithium has emerged as the major alternative. This soft silvery white metal is the major component of rechargeable batteries, used in Electric Vehicles (EV), laptops, mobile phones, etc. Lithium batteries surpass in advantage, when it comes to efficiency and adaptability. High energy density, low self-discharge rate, cell voltage and low maintenance are some of the features that make Lithium batteries the most sought after variant in this field.
Lithium also overcomes one of the major hindrances associated with renewable energy sources -- intermittency. It refers to the non-continuous energy production of renewable energy sources such as solar or wind. It has been the major talking point during policy discussions by advocates of natural gas. The solution lies in energy storage systems which can stock energy created by solar panels or wind turbines during peak times and release it into the grid during lulls in power production. Lithium-ion batteries are the core components of this energy storage system.
In the coming years the demand for lithium-ion batteries is expected to grow significantly. According to the International Energy Agency, the number of electric vehicles on the road is expected to reach 145 million by 2030. In this backdrop, the finds in India acquire a promising dimension. This can be a major step towards the realisation of the goal of AtmanirbharBharat. India currently imports all its lithium requirements. Between FY17 and FY20 India had imported over 165 crore lithium batteries at an estimated cost of 3.3 billion dollars.
Thus, securing sources of lithium become important if our country is to honour the pledge to achieve net zero emission by 2070. The central Electricity Authority of India has estimated that the country will need 27GW of grid scale battery energy storage systems by 2030, which will require massive amounts of lithium. As per one estimate Chile with 9.2million tonnes followed by Australia 6.2 million, lead the world in terms of lithium reserve. The 5.9 million tonnes can position India as a major player in the lithium market.
But in spite of this, we should be cautious in our optimism. Firstly, the finds are under the category termed as “inferred resources”. These are resources for which quantity, grade and mineral content are estimated with low levels of confidence. It is based on information gathered from locations such as outcrops, trench, pits, workings and drill holes which may be of limited or uncertain quality. According to UNFC-1997 (United Nations Framework Classification for Reserves/Resources) there are four stages of exploration. Reconnaissance(G4), Primary exploration(G3), General Exploration(G2) and Detailed Exploration(GI). The Lithium finds are at the G3 level.
Mining of lithium has its own environmental and ecological effects. Those include water, soil and air pollution. The process of extracting lithium from the ore is a water intensive process. As per estimates it takes approximately 2.2 million litres of water to produce one tonne of lithium.
At the geo political level, this push towards greener energy source, had led to a new competition among nations to secure minerals that go into making batteries: Lithium, nickel, cobalt manganese, palladium, etc. In many cases those minerals are being mined using some of the world's dirtiest technologies. But the world had chosen to look the other way. It’s a topic nobody wants to discuss.
The result being, one of the most destructive dynamics in global economic history is again making its appearance. The systematic extraction of raw commodities from the global south in a way that make developed countries unimaginably rich, while leaving a trail of environmental degradation, human rights violation and underdevelopment all across the developing world. Neighboring China closely followed by the United States are forging newer relations every day to keep ahead in this competitive endeavour.
India finds itself in a unique position in this regard. In this era of resource nationalisation, India can set a new narrative for the world to emulate. The presidency of G20 can be utilised to explore possibilities to determine “If there are globally beneficial proposals regarding equitable access to benefits derived from these critical minerals”. The push towards a greener future will only make sense, when the building blocks of this new world are free from environmental destruction and violation. Or else the process will be self-defeating and put the planets future at stake.
By Emon NC.