These incentives would be offered to companies for setting up lithium processing plants under a new critical minerals policy that was being worked out by the mines ministry
Earlier this year, Ola Electric was also reported considering bidding for mining rights for lithium blocks being auctioned by the Indian government
It is pertinent to note that in November last year, the government opened the auction of lithium, along with 20 other critical minerals.
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The government is considering providing incentives to private companies to establish lithium processing facilities in an effort to develop its lithium mining sector and bolster the supply of the EV battery metal.
As per Reuters’ report, citing government sources, these incentives would be offered to companies for setting up lithium processing plants under a new critical minerals policy that was being worked out by the mines ministry.
“The critical minerals policy will be comprehensive and will cover all aspects from exploration to mining to value addition,” one of the sources said.
“It will also cover incentives for beneficiation and refining within the country,” the source said.
The sources, however, said it was a little early to know the exact form of incentives the government would offer, but New Delhi would try to take a cue from countries such as Australia and Canada.
It is pertinent to note that in November last year, the government opened the auction of lithium, along with 20 other critical minerals.
Earlier this year, Ola Electric was also reported considering bidding for mining rights for lithium blocks being auctioned by the Indian government.
Other potential bidders for lithium reportedly include Adani Enterprises, Vedanta Ltd, Reliance Industries and Himadri Chemicals.
The collective value of the blocks was estimated at INR 45,000 Cr at the time of the auction. These blocks include titanium, bauxite (aluminous laterite), glauconite, nickel, chromium, potash, copper, and graphite.
Transport minister Nitin Gadkari even said that if the lithium found in Jammu & Kashmir can be used, India could become the world’s leading car maker.
Lithium is a crucial mineral for the manufacturing of lithium-ion batteries used in electric vehicles (EVs), smartphones, and various other battery-operated electronic devices.
The largest exporters of lithium in the world are China, Chili, Australia, and Others.
World Economic Forum expects the demand for lithium to reach 1.5 Mn tonnes of lithium carbonate equivalent (LCE) by 2025 and over 3 Mn tonnes by 2030.
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