Why Centre is inviting bids for 20 critical mineral blocks
The Indian government is gearing up to open bidding for 20 essential mineral deposits, including lithium and graphite, within the next two weeks, as stated by Mines Secretary VL Kantha Rao. These critical minerals will play an important role in India's economic growth and national security. Lithium and Rare Earth Elements (REEs) are becoming increasingly important due to the country's dedication to transitioning to clean energy and reaching net-zero emissions by 2070.
First lithium deposits found in Jammu and Kashmir
Earlier this year, India uncovered its first lithium reserves in Jammu and Kashmir, boasting an estimated 59 lakh tons. India has been actively seeking ways to secure lithium supplies, an essential component in electric vehicle (EV) batteries. In August 2019, Khanij Bidesh India Ltd (KABIL) was established to pinpoint, acquire, develop, and process strategic minerals abroad for India's use.
Securing key minerals through overseas pacts
India has been working on international agreements to obtain crucial minerals from resource-rich nations like Australia, Argentina, and Chile. As the global community shifts away from petrol-powered engines, the demand for lithium, nickel, cobalt, and other metals used in lithium-ion batteries is skyrocketing. In 2021, lithium-ion battery costs increased for the first time in the EV era, with Tesla's Elon Musk citing high raw material costs as one of the company's most significant challenges.
