India must utilize sustainable technologies for lithium extraction: Akshay Kashyap
CXOToday has engaged in an exclusive interview with Mr. Akshay Kashyap, MD, Greenfuel Energy Solutions Pvt. Ltd.
- How will lithium discovery in J&K reduce our import dependency on China?
One of the biggest challenges that the Indian EV industry is currently facing is the dependence on China for lithium cells. A startling 85% of the world’s raw material capacity is under China’s control, and it dominates the midstream processing of important raw materials like manganese, cobalt, and lithium. India also imports raw materials like lithium oxide and hydroxide, between April-November 2022, India imported 716 tonnes of these key commodities and paid $42.69 million.
However, with the recent discovery of INR 34 trillion worth of lithium reserves unearthed in J&K, India can genuinely become “Atmanirbhar” by reducing its reliance on foreign nations like China. This discovery of the precious metal will encourage India to manufacture its own lithium cells and set up its own independent refining process to help the nation transition to a more sustainable future by cutting its dependence on imports and bringing down the price of EV batteries. Additionally, the lithium discovered in Jammu and Kashmir could create job opportunities in the region and contribute to the state’s economic development.
2. How will the discovery of Lithium shape India’s power dynamics with respect to the world?
With the finding of 5.9 million metric tonnes (MMT) of lithium deposits in J&K, India will now be ranked sixth globally, behind nations like Bolivia, Argentina, Chile, Australia, and China. The World Economic Forum predicts that by 2025, the demand for lithium will be 1.5 MT of lithium carbonate equivalent (LCE), and by 2030, it will be over 3 MT. According to this lithium demand prediction, production must triple by 2025 and nearly double by 2030. India’s discovery of lithium resources, therefore, occurs at the ideal time for the country to initiate its domestic manufacturing of Lion batteries, putting India on track to achieve its target of net zero emissions by 2070.
India is the world’s largest importer of lithium batteries and sources most of its supplies from China. Between FY17 and FY20, it is predicted that over 165 crore lithium batteries were imported into India for a total cost of up to $3.3 billion. India can reduce its reliance on China thanks to the recently discovered Lion reserves, and it may even overtake China as one of the world’s major exporters of lithium batteries. Moreover, with the G20 summit coming up, this discovery of this crucial metal will position India in good stead.
3. Do you think India has the means to procure lithium sustainably?
India’s dominance in the EV manufacturing industry is not guaranteed by its lithium reserves alone, but they do provide the nation more power, assuming the extraction is profitable and sustainable. According to studies, the extra energy required to make an EV battery causes manufacturing a typical EV to emit more carbon pollution than producing a gasoline-powered car. Furthermore, the extraction of lithium from the mines requires the use of a significant volume of fresh groundwater, making the process of obtaining lithium inefficient.
India must therefore utilize sustainable technologies, such as Direct Lithium Extraction (DLE), a tried-and-tested method. The process enables lithium extraction from the brine without evaporation, preventing any harm to the local ecosystem or aquifer depletion. India must successfully put this cutting-edge technology into practice to conduct mining operations in a sustainable and environmentally responsible manner.
4.How will the PLI scheme launched by GOI facilitate the supply chain of the EV ecosystem?
The government has consistently supported the growth of the country’s EV ecosystem over the past few years through policy and regulatory frameworks like FAME II, the PLI Scheme for Auto and Auto Components, and battery production. The National Programme on Advanced Chemistry Cell (ACC) Battery Storage’s Production Linked Incentive (PLI) Scheme, with a budgetary outlay of Rs. 18,100 crores, has been approved by the government to achieve a manufacturing capacity of Fifty (50) Giga Watt Hours (GWh) of ACC for enhancing India’s manufacturing capabilities.
The PLI scheme will help the companies that make EV batteries by enabling them to set up a cell production facility that can service any application by selecting the most cutting-edge technology, related plant & machinery, raw materials, and other intermediate items. Due to a considerable decrease in crude oil imports and an increase in the amount of renewable energy in the national grid, the ACC PLI program is anticipated to have a direct impact on national savings. Additionally, the ACC PLI program and Faster Adoption of Manufacturing of Electric Vehicles (FAME) will allow India to transition quickly from conventional fossil fuel-based automobile transportation systems to Electric Vehicles (EV)-based systems that are more advanced, efficient, and environmentally friendly.
5. Is there a need to improve the R&D capabilities to harness the benefits of lithium deposits?
Yes, there is a need to improve the R&D capabilities to harness the benefits of lithium deposits. As the demand for lithium continues to grow and new extraction techniques are developed, it is important to ensure that research and development into lithium extraction, refining, and applications keep pace and is conducted responsibly. This includes improving the safety and environmental impacts of lithium extraction and refining and developing new technologies that can increase efficiency and reduce costs. Additionally, research and development should focus on increasing the amount of recycled lithium and reducing reliance on finite geological resources.
