India’s lithium discovery and associated risks

What’s in today’s article?

• Why in news?
• News Summary: India’s lithium discovery and associated risks
• Why is this discovery significant?
• What are the environmental effects of Li mining?
• What safeguards does India’s mining sector have?
• What are the criticisms of DMF?

 

Why in news?

• News of the discovery of 5.9 million tonnes inferred resources of lithium in the Salal-Haimana area of Reasi district, Jammu & Kashmir has been received as a game-changer in India’s impending transition to a green economy.
  • The term ‘inferred’ refers to the ‘preliminary exploration stage’, the second of a four-step process.
• However, analysts fear that if the local populace is not meaningfully engaged, the resulting tension could introduce new socio-environmental conflicts.

  

News Summary: India’s lithium discovery and associated risks

• Recently, the Geological Survey of India, during preliminary exploration stage, found that 5.9 million tonnes have been found in Salal-Haimana area of Reasi district of J&K.
• With this discovery, India now has the third largest resource of lithium globally, but it will take time to convert it to reserves.

 

Why is lithium discovery significant?

• Crucial for a green economy
  • Lithium-ion batteries are used in wind turbines, solar panels, and electric vehicles, all of which are crucial in a green economy.
• Sustainable supply of critical metal amidst the increased global demand
  • A World Bank study suggests that the demand for critical metals such as lithium (Li) and cobalt is expected to rise by nearly 500% by 2050.
  • The global electric vehicle market is projected to reach $823.75 billion by 2030.
    • It will register a Compounded Annual Growth Rate (CAGR) of 18.2% from 2021 to 2030.
    •  At the same time, India’s EV market is projected to register a CAGR of 23.76% by 2028.
  • Hence, this discovery will enable India to secure its critical mineral supplies and build self-sufficiency in this sector.

 

Boost the domestic battery-manufacturing industry

• India currently imports all of its Li from Australia and Argentina and 70% of its Li-ion cell requirement from China and Hong Kong.
• The lithium reserves in J&K could boost the domestic battery-manufacturing industry.
• If the perceived size of the mineral reserves in J&K is borne out by further exploration, India could jump ahead of China vis-à-vis its Li stockpile.
• Support to India’s ambitious plans
  • The J&K reserves will also help advance the Indian government’s ambitious plan of 30% EV penetration in private cars, 70% for commercial vehicles, and 80% for two and three-wheelers by 2030 for the automobile industry.
  • They will also strengthen India’s National Mission on Transformative Mobility and Battery Storage as well.
  • Launched in March 2019, this mission aims to formulate strategies for transformative mobility and Phased Manufacturing Programmes for EVs, EV Components and Batteries.
• Geostrategic significance
  • Critical mineral dependencies constitute a major geostrategic concern in the transition to net-zero carbon energy systems.
  • China currently controls 77% of the global lithium-ion battery manufacturing capacity and is home to six of the world’s 10 manufacturing companies.
  • The growing geopolitical rivalry with China complicates India’s security considerations.
    • This is especially relevant in light of the longstanding, and recently escalating, territorial and border disputes.
  • To reduce dependence on China, the Indian government and industry are pushing for a ‘Rare Earths Mission’ to exploit the country’s critical mineral reserves.
    • Country’s critical mineral reserves accounted for 6% of the world’s rare-earths’ reserves prior to the discovery of Li in J&K.
  • In this context, the new discovery has more geostrategic implications considering the geopolitical sensitivity of its wider location.

 

What are the environmental effects of Li mining?

• Environmental degradation
  • Extracting Li from hard rock mines entails open-pit-mining followed by roasting the ore using fossil fuels.
  • Industry estimates suggest that this process consumes 170 cubic metres of water and releases 15 tonnes of CO2 for every tonne of Li extracted.
  • Open-pit-mining, refining, and waste disposal from these processes substantially degrades the environment.
  • It also depletes and contaminates waterways and groundwater, diminishes biodiversity, and releases considerable air pollution.
• Socio-environmental challenges
  • In Australia, Li-bearing pegmatite deposits are found in the ancient geological regions of Pilbara and Yilgarn cratons, whose continental rocks have been stable for over a billion years.
  • The Himalaya on the other hand is the youngest mountain range in the world and is much more unstable.
    • The ongoing land sinking tragedy in Joshimath is an example of this fact.
  • Against this backdrop, the socio-environmental effects of mining are likely to be far worse considering the densely populated regions of India.
  • Also, it is being feared that the mining would negatively affect the employment scenario in the region.
    • Experts claim that employment in mining may not fully offset the consequences on local agriculture, animal husbandry, and tourism.

 

What safeguards does India’s mining sector have?

• In 2015, Lok Sabha amended the Mines and Minerals (Development and Regulation) Act 1957 to establish the District Mineral Foundation (DMF).
• The DMF is a non-profit statutory trust for every Indian district affected by mining-related operations.
• DMF works for the interest and benefit of persons, and areas affected by mining-related operation.

 

What are the criticisms of DMF?

• The DMFs have become sites of centralised bureaucratic control, without meaningful public participation or accountability.
• E.g., a CAG audit in May 2022 noted that the district collectors of Bokaro, Dhanbad, and Ranchi incurred an expense of ₹1568.04 crore from DMF funds, without identifying the areas affected by mining or a list of affected people.

 

 

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Q1) What is Lithium?

 Lithium is a chemical element with the symbol Li and atomic number 3. It is a soft, silvery-white alkali metal. Lithium is a special metal in many ways. It's light and soft — it can be cut with a kitchen knife and so low in density that it floats on water.

 

Q2) Why is lithium in such demand? 

Besides being used in batteries to power smartphones, laptops and other gadgets, lithium is an essential component in the rechargeable batteries that run electric vehicles (EVs) and in storage batteries for energy from renewable sources.

 

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Source: Explained | Why India’s lithium discovery is fraught with social and environmental risks | PIB