India stands at the cusp of a historic energy transformation, with its ambitions soaring towards a future powered by clean electrons. The vision is audacious: 500 GW of non-fossil fuel power by 2030, a staggering 50% of the nation’s energy mix, and a swift adoption of electric vehicles (EVs) with a target of ~30% share of auto sales within the same timeframe, a huge increase from the existing ~2%. At the heart of this electrifying transition lies the lithium-ion batteries, the “cornerstones” of clean mobility and energy storage. Lithium- the soft, silvery alkali metal, serving as their indispensable linchpin. The critical question that echoes through policy corridors and industry boardrooms is stark: can India solve the intricate “lithium puzzle” – can it mine and strategically source enough of this vital element to fuel its ambitious net-zero by 2070 and EV targets?
Unearthing the Elusive Silver: Domestic Lithium
India’s first major lithium discovery came in early 2023, with the Geological Survey of India’s (GSI) announced an inferred 5.9 million metric tons of lithium in the Salal-Haimona area of Reasi, Jammu & Kashmir. This finding, which was hailed as one of the biggest in the world, positioning India among the nations with substantial reserves, this discovery ignited fervent hopes of establishing a reliable domestic supply chain.
However, translating resources into production has proved challenging. The government’s auctions of the J&K block in late 2023 and spring 2024 drew no qualified bids. Industry sources blamed insufficient exploration data: with the deposit still classified under the G3 (preliminary) survey grade. In response, the Mines Ministry has mandated a G2-level re-survey for greater resource confidence before re-auctioning. In short, India’s nascent lithium mining is still exploratory – there are no operating lithium mines yet. Other finds hint at further potential. This year GSI also reported lithium concentrations (10–2,000 ppm) in Korba, Chhattisgarh, enough to plan the country’s first dedicated mine there. The government has invited bids for 20 critical-mineral blocks across states (including Chhattisgarh, Jharkhand, Tamil Nadu and J&K), indicating broader exploration. Even Karnataka, Andhra and others may harbour lithium-bearing pegmatites. Nonetheless, official inventories still list India’s extractable lithium at only about 12.3 million tonnes – roughly twice the J&K estimate and far short of projected demand. Domestic mining is only a first step; India lacks local refining capacity and must still import virtually all lithium compounds.
Seeking Allies Abroad: A Global Lithium Hunt
With the realization that significant domestic output still years away, India is forging international alliances to secure lithium. State-owned joint venture Khanij Bidesh India Ltd. (KABIL), a consortium of NALCO, Hindustan Copper, and MECL, has inked an agreement with Argentina’s CAMYEN to develop five lithium brine blocks in Catamarca.
India also co-chairs the India–Australia Critical Minerals Partnership, launched in 2022, to co-develop lithium and cobalt supply chains. Indian firms — including Coal India, Oil India, and ONGC Videsh — are in talks with SQM and Codelco, the lithium majors of Chile. Elsewhere, India is exploring cobalt mines in the Democratic Republic of Congo.
Private sector companies are joining these efforts. Mumbai-based Ola Electric (SoftBank-backed) has signaled its strong interest in bidding for domestic lithium blocks, as it seeks vertical integration of its battery supply. In fact, industry analysts note, India already imports most lithium-ion cells and batteries – for $1–3 billion annually – with Chinese firms playing a dominant role in the processing and supply of these components. To diversify away from any one source, experts urge partnerships with stable, friendly suppliers: Australia, Chile, Argentina and even some African nations. In December 2023, a Hyderabad battery-materials startup (Altmin) signed a technology-and-supply deal with Bolivia’s state lithium company YLB, aiming to build LFP cathode factories in Bolivia and India. These initiatives – public and private – reflect a concerted “multifaceted” strategy (as one IEEFA analyst puts it) to reduce reliance on imported metals.
Navigating Industry Hurdles: From Refining Bottlenecks to Environmental Concerns
India’s ambitious blueprint for a clean energy future, heavily reliant on domestically manufactured batteries, collides with a set of significant and complex realities. Most glaring challenge is the lack of local lithium processing and redefining capabilities.
- Missing Lithium Tech Know-How:
India lacks the technology to process lithium ore into battery-grade materials. Talks are underway with countries like Australia, the US, Japan, and Russia to bridge this gap. - No Domestic Lithium Refining Yet:
India is still dependent on imports for nearly all its lithium needs. Until local refining starts, battery makers will face supply bottlenecks. - Gigafactory Plans Face Roadblocks:
Despite a ₹18,100 crore PLI scheme to boost battery production, actual gigafactories may struggle without a local ore-to-battery supply chain. - Battery Shortages Already Hurting EV Rollout:
EV makers like Ola are dealing with idle scooters in service yards due to battery shortages and delayed spare parts – a clear sign of local supply constraints. - Skilled Workforce Still Lacking:
India’s auto industry is not yet fully equipped for large-scale battery manufacturing. There’s also a shortage of trained workers for battery assembly and recycling. - Water-Intensive Mining in Dry Zones:
Lithium mining needs a lot of freshwaters. In Jammu & Kashmir – an already water-stressed area – this could harm local ecosystems and soil. - Environmental Risks from Lithium Extraction:
Worldwide, lithium projects have triggered protests over environmental damage. India may face similar backlash if sustainable mining isn’t ensured. - J&K Lithium Belt in a Sensitive Zone:
The lithium-rich region in J&K has prompted military deployments due to concerns over stability and strategic security. - Geopolitical Dependence a Major Risk:
China controls most of the world’s lithium refining and has a big stake in global supplies. India is racing to find alternate sources but remains vulnerable. - Volatile Lithium Prices Threaten Investment:
Lithium prices dropped in 2024, making mining less attractive and slowing investment – a risk India must consider.
Surging Demand and the Scale of Ambition
These challenges gain even greater urgency against surging demand forecasts. By one estimate India’s total battery demand (EV plus grid-scale energy storage) is projected to grow from about 15 GWh in FY2024 to some 127 GWh by FY2030. The Commerce Ministry envisions a need of around 300 GWh of advanced EV batteries needed by 2030. It follows that lithium demand could run into hundreds of thousands of tonnes of lithium carbonate equivalent per year (beyond the roughly 15,000 tpa imported in 2022). Global demand for lithium is forecast to quadruple by 2030 as EV production balloons. Constrained by these projections, even India’s planned 50 GWh of cell manufacturing capacity under the PLI will require substantial lithium ore or processed lithium chemicals imports. Market reports underscore India’s stakes. Omdia projects India’s battery market rising from $8.4 bn in 2025 to a formidable $18.3 bn by 2030, driven by domestic EVs and renewables. To reach that scale, analysts note the country needs far more “integrated gigascale” capacity – which PLI and new ventures aim to provide. The government expects even stand-alone grid storage to hit 1.6 GWh and renewables of 9.7 GW by 2027. Each gigawatt-hour of battery requires on the order of hundreds of tonnes of lithium salts, amplifying the supply challenge. In response, policymakers have also moved to promote recycling: in 2025 India announced incentives worth ~₹1,500 cr for recycling 24 critical minerals (including lithium), aiming to recoup metals from discarded batteries (current domestic recycling is only ~75,000 tonnes/yr).
Policies and Corporate Moves: A Concerted National Effort
The government has responded to the critical challenge of both policy initiatives and encouraging active participation from corporate muscle. The January 2025 launch of the National Critical Minerals Mission (₹16,300 cr plus another ₹18,000 cr from public sector undertakings (PSUs)) seeks to overhaul the exploration, mining and processing of strategic minerals, with lithium at the forefront. This mission promises streamlined regulations and incentives across the value chain, from initial resource discovery to recycling. Meanwhile, existing schemes like FAME-II (Faster Adoption and Manufacturing of Electric Vehicles in India Phase II), which provides subsidies for EV adoption, and the ACC-PLI (Advanced Chemistry Cell Production-Linked Incentive) scheme, which incentivizes domestic battery manufacturing, are actively nudging both automotive manufacturers and battery cell producers to make significant investments in local production capabilities.
Private players are also rising to the occasion:
- JSW Group plans 50 GWh of battery capacity by 2030.
- Mahindra, Reliance, and Amara Raja have announced gigafactory investments.
- Ola Electric is vertically integrating its supply chain, including lithium sourcing.
- Jindal Power and Steel Authority of India are exploring lithium assets overseas.
- Altmin is building bilateral supply chains with Bolivia for LFP cathodes.
To further hedge supply risks, India has also introduced a ₹1,500 crore incentive for recycling 24 critical minerals, including lithium — a step toward circularity, though current recycling stands at just 75,000 tonnes annually.
Can India Truly Crack the Code? A Future Hanging in the Balance
India’s lithium saga is far from reaching its final chapter. ve pursuit of international ventures, and the growing momentum of supportive government policies – as evidence that the nation is actively laying the essential groundwork for a more self-reliant and diversified battery material supply chain. “China currently dominates midstream processing,” astutely observes Ola CEO Bhavish Aggarwal, “but the mines are primarily located in Australia, Chile, and Argentina”; he believes that by strategically “localizing the midstream” processing capabilities within India and forging strong partnerships with these resource-rich nations, India “can effectively build an alternate and more secure supply chain.” Industry experts widely echo this call for a proactive and diversified approach. An IEEFA analysis urges India to “de-risk its critical minerals sourcing by identifying new international resources” and deepen ties with stable, resource-rich partners. Yet hurdles remain. The J&K auctions’ failure shows India must fill data gaps and tame investor doubts. Building lithium hydroxide refineries and battery-grade plants will cost time and capital. Environmental and local-community consent issues could slow project development. Markets may also surprise: a lithium price crash in 2024 cooled miners’ enthusiasm, suggesting India’s plans must withstand commodity cycles. Looking ahead, India’s battery ambitions will depend on execution. If GSI converts resources into mines, if KABIL and private firms secure foreign reserves, and if refiners and recyclers scale up fast, India could indeed crack the lithium code. Until then, policymakers and industry leaders warn, India’s energy transition will hinge on how nimbly it can diversify and secure raw materials. As one expert put it, ensuring a resilient lithium supply chain is a “priority” and will require a concerted, multi-pronged effort.
India may not yet have solved the lithium puzzle — but it’s assembling the pieces, one strategic move at a time.
