The Geological Survey of India (GSI) has denied reports that large deposits of lithium – a key element in the manufacturing of rechargeable batteries for electronics and electric vehicles – are being found in Rajasthan. As per a PTI report, the agency said that the reports online about the discovery of the mineral in Rajasthan’s Nagaur district were ‘baseless’. The agency said that it was carrying out drilling activities in the region to search for lithium, tungsten and other rare elements in the area since 2019-2020 though it had not shared any information on the discovery of lithium in the area.
The GSI said that it would only share any report on its discovery after the drilling process was completed.
Lithium is a key element in Lithium-ion battery packs used in all-electric and strong hybrid powertrains.
As per reports, the discovery of lithium deposits in Rajasthan was first revealed by the state’s Cabinet Minister for Mines, Pramod Bhaya. The reports claimed that the deposits were larger than the reserves discovered in Jammu and Kashmir earlier this year and could meet 80 per cent of India’s demand. The deposits in J&K were the first significant reserves to be found in India with the previous discovery having been of a small reserve in Karnataka.
Lithium has gained tremendous significance in the auto industry in recent years, especially with the rapid push towards electrification. The EV industry in India in the past few years has seen significant growth across segments. Lithium is a key element in the manufacturing of battery packs for electric vehicles aside from also being used in the manufacturing of rechargeable batteries used in a myriad of electronic devices.
With the increased focus on going electric, demand for lithium is also growing across the globe.
With electric vehicles gaining popularity in the country, it also brings with it increased demand for battery packs and therefore lithium to produce the batteries. Currently, multiple manufacturers either source lithium from global markets to manufacture batteries or import finished battery packs to meet demand. This has an impact of the cost of production of batteries which translates to higher prices of the finished car or e-scooter in the hands of the customers.
With inputs from PTI
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