India is keen to explore the newly established “inferred” lithium resources of 5.9 million tonnes in Salal-Haimana area of Reasi district in Jammu and Kashmir. Chile, with the world’s largest reserves of lithium, is interested in partnering with India to provide technical expertise in exploiting the reserves.

Understanding the Reserves

The ‘inferred’ reserves of 5.9 mn tonnes in J&K’s Reasi are in mineral form unlike Chile’s salt pans. The term ‘inferred’ refers to the ‘preliminary exploration stage’, the second of a four-step process. Chile-based SQM, the world’s largest producer of lithium, has a venture in Australia to tap lithium in mineral form. Chile has around 48 per cent of the total lithium reserves in the world, contained mostly in the Salar de Atacama, a large salt flat located in the country’s north.

India’s Policy

India and Chile renewed their Memorandum of Understanding (MoU) on cooperation in geology and minerals in March 2019 for five years. In 2022, Khanij Bidesh India Limited (KABIL), a joint venture company, stepped up efforts to source strategic minerals from countries like Australia, Argentina, and Chile. KABIL is focusing on identifying and sourcing battery minerals like lithium and cobalt, and engagement with a few companies is underway in these countries.

India’s Dependence on Imports

India currently imports all its lithium needs and is almost entirely dependent on inflows of these imported cells for domestic consumption. The discovery of a large reserve in Reasi, Jammu and Kashmir provides hope for the country. The fact that the majority of the global reserves are located in regions with severe water stress makes this discovery even more important. India could be a potential replacement for the countries with water shortages as extracting lithium requires a large amount of water.

Prospects in J&K

The Geological Survey of India (GSI) estimated an inferred resource of 5.9 million tonnes of lithium ore in Salal-Haimna areas of Reasi district after carrying out a G3 stage (fairly advanced) mineral exploration project.

Significance of the Find

The discovery of a large reserve in India marks the start of a new era for the entire world. Lithium is an essential component in the rechargeable batteries that run electric vehicles (EVs) and in storage batteries for energy from renewable sources. The potential demand for lithium is expected to be largely driven by batteries.

Understanding Lithium

Lithium is a soft, silvery-white alkali metal. It is the least dense metal and the least dense solid element. Like all alkali metals, lithium is highly reactive and flammable. It is commonly obtained from brines because of its solubility as an ion, and it is present in ocean water. Lithium is an essential component in the rechargeable batteries that run electric vehicles (EVs) and in storage batteries for energy from renewable sources. It is mostly employed in the manufacturing of ceramics and glassware, greases, medicinal compounds, air conditioners, and aluminium, among other things.

Why In News

The Chilean government is interested in collaborating with India to leverage its technical expertise in exploiting the inferred lithium resources of 5.9 million tonnes in the Salal-Haimana area of Jammu and Kashmir’s Reasi district, thereby tapping into the lithium value chain.

MCQs on India’s Role in the Global Lithium Value Chain

  1. Which country is interested in partnering with India to tap into the lithium value chain?
    A. Chile
    B. China
    C. Japan
    D. South Korea
    Correct Answer: A. Chile
    Explanation: The essay mentions that Chile is keen to partner with India on tapping into the lithium value chain.
  2. What is the estimated amount of “inferred” lithium resources in the Salal-Haimana area of Jammu and Kashmir?
    A. 5.9 million tonnes
    B. 9.5 million tonnes
    C. 2.3 million tonnes
    D. 7.1 million tonnes
    Correct Answer: A. 5.9 million tonnes
    Explanation: The essay mentions that the Salal-Haimana area of Jammu and Kashmir has “inferred” lithium resources of 5.9 million tonnes.
  3. Which company is planning to invest in the Indian electric vehicle (EV) space?
    A. BYD Auto Co. Ltd.
    B. Tesla, Inc.
    C. Ford Motor Company
    D. General Motors Company
    Correct Answer: A. BYD Auto Co. Ltd.
    Explanation: The essay mentions that BYD Auto Co. Ltd. is planning to invest in the Indian EV space.
  4. Which region in India has newly established “inferred” lithium resources that Chile is interested in partnering with India to exploit?
    A. Salal-Haimana area in Reasi district, Jammu and Kashmir
    B. Sundarbans delta, West Bengal
    C. Aravalli Range, Rajasthan
    D. Deccan Traps, Maharashtra
    Correct Answer: A. Salal-Haimana area in Reasi district, Jammu and Kashmir
    Explanation: The essay states that Chile is keen to partner with India on tapping into the lithium value chain by extending technical expertise in exploiting the newly established “inferred” lithium resources of 5.9 million tonnes in Salal-Haimana area of Reasi district in Jammu and Kashmir.

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