India Targets Lithium Self-Sufficiency in 3-4 Years, Says Minister
Team Finance Saathi
05/Mar/2025

What’s Covered in the Article:
- India aims to become self-sufficient in lithium within 3-4 years under the National Critical Mineral Mission.
- Rs. 32,000 crore (US$ 3.67 billion) approved for lithium exploration and mining, with GSI playing a key role.
- India collaborates with Argentina on lithium block exploration to strengthen its mineral security.
India is moving towards self-sufficiency in critical minerals like lithium, aiming to meet its domestic demand within the next three to four years. Union Minister of Coal & Mines, Mr. G. Kishan Reddy, announced this during the 175th-anniversary celebrations of the Geological Survey of India (GSI) in Kolkata.
With the growing importance of lithium in mobile phone batteries, electric vehicles (EVs), and solar panels, the Indian government has launched the National Critical Mineral Mission to boost domestic mining of essential minerals. This initiative is expected to significantly reduce India’s reliance on imports and enhance the country’s resource security.
National Critical Mineral Mission & Government Investment
To accelerate domestic lithium exploration, the Indian government has approved a massive investment of Rs. 32,000 crore (US$ 3.67 billion) under the National Critical Mineral Mission. This funding will support efforts to:
- Identify and develop domestic lithium reserves.
- Strengthen lithium-ion battery production for India's EV and renewable energy sectors.
- Reduce dependency on foreign lithium imports, ensuring a stable supply for key industries.
The Geological Survey of India (GSI) will play a pivotal role in mineral exploration, making use of advanced geospatial technologies to map and extract lithium efficiently.
International Collaboration for Lithium Supply
In addition to boosting domestic production, India is actively exploring global lithium partnerships. The GSI has partnered with Argentina to explore five lithium blocks in Latin America, a region known for its rich lithium reserves. This collaboration will help secure a stable lithium supply while India works on its own mineral production capabilities.
The Role of the Geological Survey of India (GSI)
Since its inception in 1851, the GSI has played a critical role in India's mineral discovery and resource management. Over the years, its functions have expanded to include:
- Exploration of critical minerals like lithium, cobalt, and rare earth elements.
- Support for infrastructure projects, including dam construction, tunneling, and geological surveys.
- Heritage preservation and disaster preparedness by analyzing seismic activities and landslides.
With its expertise in mineral exploration, the GSI is leading the search for lithium deposits across India, ensuring that the country can harness its natural resources effectively.
Impact on India's Renewable Energy and EV Industry
Achieving lithium self-sufficiency will be a major boost for India's renewable energy and electric vehicle (EV) industries. Currently, India imports a significant portion of its lithium from countries like China and Australia. By developing domestic lithium reserves, India can:
- Reduce the cost of lithium-ion batteries, making EVs more affordable.
- Strengthen its renewable energy storage capabilities.
- Create jobs in the mining and battery production sectors.
India’s Vision for Global Mineral Leadership
The government has set an ambitious goal for India to become a global leader in mineral exploration by 2047, in alignment with the vision of Viksit Bharat (Developed India). The National Critical Mineral Mission will play a vital role in this transformation, ensuring that India develops its own mineral resources while securing international partnerships.
Conclusion
India’s plan to achieve lithium self-sufficiency within three to four years marks a significant step towards resource independence. With a Rs. 32,000 crore investment, international collaborations, and the GSI’s expertise, the country is well on its way to reducing its import dependency and boosting its renewable energy and EV industries. As India continues to expand its mineral exploration efforts, it is set to become a key player in the global lithium market, ensuring a sustainable and self-reliant future.
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