Explained: How can new lithium reserve discoveries be a game changer for Indian economy and green future?

The recent unearthing of lithium reserves in India has paved the way for a novel avenue to bolster the country's economy. The Geological Survey of India (GSI) has uncovered a substantial deposit of the pivotal mineral in Degana, Rajasthan, which is believed to be considerably more voluminous than the one found in the Union Territory. The novel reserve is projected to satiate 80% of the country's total demand for lithium, which is predominantly employed in the production of rechargeable batteries, particularly those employed in electric vehicles, portable electronic devices like mobile phones/tablets/laptops, and power tools.

Given India's import reliance on various minerals, such as lithium, nickel, and cobalt, the discovery of fresh lithium reserves in the country is a salutary development. The significance of lithium in today's world cannot be overemphasized, as it constitutes a crucial component of modern technology. Its elevated energy density makes it a propitious choice for devices where weight and size are crucial factors.

Applications of lithium:

Lithium is extensively employed in the production of rechargeable batteries for electric vehicles, portable electronic devices, and power tools. The use of lithium in electric vehicle batteries has witnessed a momentous surge in recent times, as more and more individuals opt for electric vehicles to abate their carbon footprint. The demand for lithium is anticipated to continue growing as more countries transition towards a sustainable and eco-friendly future.

Apart from its battery application, lithium is also utilized in the production of glass, ceramics, lubricants, and air conditioning systems. In the medical domain, it is employed to treat certain psychiatric and bipolar disorders.

Tungsten and lithium reserves in Degana:

The unearthing of lithium reserves in Degana, Rajasthan is not the first time that the region has made headlines for its mineral reserves. The British stumbled upon tungsten in 1914 on Revant hill in Degana, which was manufactured in the region and employed to produce war material for the British Army during the First World War. It was also employed to fabricate surgical instruments in the healthcare and energy sectors, even post-Independence.

However, with China's export policy offering lithium at low prices and its monopoly on the mineral, tungsten production in India became exorbitant and was halted in the 1990s. The Union Minister averred that a survey conducted by the GSI in 2017-18 furnished evidence of 1.36 MT of lithium.

Impact on India's economy:

The discovery of new lithium reserves in India is anticipated to have a favorable impact on the country's economy. With India's import dependence on various minerals, the new reserves will help lessen the country's reliance on imports and save foreign exchange. Lithium production in India will also generate new job opportunities and contribute to the country's GDP.

Apart from its economic benefits, the discovery of lithium reserves in India will also have a positive environmental impact. With an increasing number of people opting for electric vehicles, the demand for lithium is expected to persist in the long run. With the availability of lithium reserves in India, the country can emerge as a global player in the production of lithium and aid in curbing its carbon footprint.

Read more: Beware! Income Tax department issuing notices for suspected evasion, here's what you need to know