New legislation opens doors for the private sector, promising to elevate India’s position in the EV battery supply chain.
In a groundbreaking move on Wednesday, India’s parliament passed a law sanctioning the auction and mining of its newly-unearthed lithium reserves. This strategic shift seeks to harness lithium’s essential role in electric vehicle battery manufacturing, marking a significant step towards fortifying India’s stand in the global EV market.
Historically, lithium found its spot on the list of atomic minerals, keeping it out of private companies’ reach. However, the recent legislative move has amended this, allowing private sector involvement in its exploration and mining. “Upon removal of these minerals from the list of atomic minerals, exploration and mining of these minerals will be open to the private sector,” highlighted a government communique.
Earlier this year, the nation discovered lithium reserves in the federally managed region of Jammu and Kashmir. The government remains optimistic about finding even more deposits in the coming months, suggesting a bright future for the nation’s electric vehicle industry.
But lithium isn’t the sole focus. The law also permits the mining and auctioning other vital minerals like titanium, beryl, niobium, and zirconium. Previously, these minerals were exclusively mined by government entities, limiting their extraction. The government believes that private company involvement could act as a ‘force multiplier’.
With growing domestic demands, the necessity to expand mineral exploration and production has never been more pronounced. “There is a need to vigorously increase exploration and production of the minerals proposed to be removed from the list of atomic minerals,” the government emphasized, reflecting its ambitions to fortify India’s position in the global electronics design and manufacturing industry.
