India’s clean energy push is constrained by its heavy reliance on imported lithium — the rare earth element vital for EV batteries, smartphones, and renewable power. Despite government initiatives, domestic reserves remain untapped, leaving recycling as the only near-term alternative.
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The irony is hard to miss. Lithium, now billed as “white gold,” was first identified in Jammu & Kashmir back in the 1990s — but at the time, it was overshadowed by the search for bauxite, then in heavy demand as the raw material for aluminium production. Lithium’s toxic reputation and limited industrial use meant geologists logged the find and moved on.
Fast forward three decades in 2023, the Geological Survey of India (GSI) announced that nearly six million tonnes of G4-stage lithium reserves may be present in J&K. The government rushed to auction mining rights to private players, but two rounds ended in failure.
Industry voiced strong concerns — reserves may not be commercially viable, extraction is complex, Kashmir’s political sensitivities pose risk, and usable output could take up to 16–17 years.
The setback has left India scrambling. While GSI undertakes further exploration — this time with less attention on bauxite — the EV sector continues to rely almost entirely on China, which dominates both reserves and processing.
Also read: India’s critical minerals drive: Legal reforms, domestic extraction, and aluminium’s emerging role
Recycling has therefore gained traction as a near-term solution. Prassann Daphal, CEO of Recyclekaro, one of the few firms in India attempting to extract lithium and other rare metals from waste, said, “Lithium, rare earth magnets, cobalt even, everything is imported, we don't have mines in India. But we have the scrap, the waste because of the consumption of all the EV batteries as well as consumption (in) electronics — the product is already there in India, we just need to recycle, extract it back and put it into the manufacturing phase.”
He added, “We have enough waste which can at least reduce (India’s) import by 30% of the raw material, like lithium, cobalt etc. So, this makes it important as a recycler that we have more flexibility with policies, funding or the subsidies available, so that more recyclers can come and support the increasing demand of these metals within India itself.”
The government has begun to react. The National Critical Mineral Mission carries an outlay of INR 1,500 crore, though industry estimates the real need at nearly INR 35,000 crore by 2030. This year’s budget also set aside INR 500 crore for lithium R&D, mostly via IITs and private circular economy firms. On the diplomatic front, India has forged a strategic partnership with Argentina and is pursuing deals with Chile and Peru, even while cautiously engaging with China given present geopolitical tensions.
Meanwhile, GSI has reported signs of lithium in Odisha, but unlike the fanfare around J&K, officials are proceeding quietly, prioritising further study before making any claims.
For now, India’s lithium story reflects missed chances, failed auctions, and a heavy reliance on imports — with recycling offering a modest but urgent silver lining.
Read our report on Red Mud - A Comprehensive Analysis of Bauxite Residue - Red Mud
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