India’s Mines Ministry has announced plans to conduct further exploration of lithium blocks in Jammu and Kashmir (J&K) before re-auctioning them. The initiative aims to provide more comprehensive details about these blocks, making them “commercially viable,” according to senior Ministry officials. This exploration is expected to be completed within six months.
The lithium blocks in the Salal–Haimana area of the Resai district in J&K have undergone two unsuccessful auction rounds. In the initial round, held in November, fewer than three bidders showed interest, failing to meet the minimum requirement to proceed. After the auction was annulled, the blocks were put up for auction again in March but received unsatisfactory responses, leading to another annulment in July. Industry concerns, including questions about resource availability, have been noted, prompting the Ministry to undertake additional exploration to address these issues.
The lithium reserves in J&K were first announced in February 2023 and are touted as India’s largest and first confirmed lithium find, with inferred reserves estimated at 5.9 million tonnes. Currently, these reserves are classified as G3 stage, which involves prospecting, mapping, and preliminary assessments. The planned exploration aims to advance these reserves to the G2 stage, providing a clearer picture of their commercial potential.
In contrast, India’s first successful lithium block auction took place in the Korba district of Chhattisgarh, where Maiki South Mining Pvt Ltd won the bid in June with a premium of 76.05 percent, reflecting strong interest and competitive bidding. Of the 38 critical mineral blocks auctioned, 14 have been allocated, with some still in the bidding process.
The Geological Survey of India is intensifying its search for critical minerals, including lithium, across states such as Jharkhand, Karnataka, and Rajasthan. Known as ‘white gold,’ lithium is highly sought after globally, especially with India’s push towards electric vehicles (EVs).
India currently relies on imports for its lithium needs, primarily from Hong Kong and China. Imports of lithium-bearing minerals totaled around ₹9,000 crore in FY24, with lithium-ion imports being even higher. While only a few countries have significant lithium reserves, China continues to dominate the global lithium mining and processing industry.
India has recently acquired lithium mines in Argentina and is actively seeking opportunities in Latin American countries like Chile, as well as in African nations and Australia.
