India sets up its first lithium mines in the Katghora region of Chhattisgarh’s Korba district after Geological Survey of India (GSI) confirms substantial lithium reserves.
This announcement was made in August, during the sixth governing body meeting of the National Mineral Exploration Trust (NMET) in New Delhi, chaired by Union Minister G Kishan Reddy.
The GSI reported lithium concentrations ranging from 10 to 2,000 parts per million (PPM) across 250 hectares, with the potential for higher concentrations.
Chhattisgarh Health Minister Shyam Bihari Jaiswal, who represented Chief Minister Vishnu Deo Sai at the meeting, said that the project was important. “The lithium mine will position Chhattisgarh as a key contributor to India’s vision of becoming a developed nation by 2047,” he said.
Why is Lithium essential?
Lithium, a critical mineral used in lithium-ion batteries for electric vehicles and other high-tech applications, is essential for renewable energy, defence, telecommunications, and transportation industries. India currently relies on imports for such minerals, making domestic production crucial for self-reliance.
Preliminary surveys indicate the block in Katghora also contains rare earth elements, further boosting its strategic importance.
E-Auction Process Announced
The Ministry of Mines has floated a Notice Inviting Tender on the MSTC portal for the e-auction of 20 mineral blocks that include lithium and rare earth element reserves in Chhattisgarh. These are spread over several states like Bihar, Gujarat, Jharkhand, Odisha, Tamil Nadu, Uttar Pradesh, and Jammu and Kashmir.
Chhattisgarh has witnessed a new high in mineral revenue where it has collected around ₹13,000 crore, in the year 2023-24. This is much better than its early years into statehood.
The Central government will provide financial incentives with a cap of $50 million to encourage exploration so that dependence on imports might be reduced. The policies are expected to support mining and research institutes in scaling up the critical minerals sectors.
This initiative follows earlier efforts, including the allocation of development rights for lithium blocks in Chhattisgarh and Jammu and Kashmir, although financial feasibility concerns limited progress in some areas.
The Katghora lithium mines are expected to mark a significant step in India’s journey towards resource independence and a sustainable energy future.
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