Every one in Indian auto industry will tell you it is a key market for automobile manufacturers, one that is growing quickly. In recent years, the market has start shifting towards electric vehicles and a focus on localise production of the most expensive batteries.
One of the biggest developments in that regard has the recent discovery of lithium reserves in Jammu & Kashmir, which estimate 5.9 million tonnes of it.
Lithium is an essential material use in the making of batteries for electric vehicles.
Most EVs in the world use lithium-ion batteries.
But what does a reserve of unharvest lithium mean for the Indian auto and energy industry?
Lets find the Answer!!!
This will Reduce the Dependency On Imports
As of now, car manufacturers in India are dependent on importing entire lithium-ion batteries or even just lithium from different countries.
Importing anything has a major cost to it, supplement by import cost.
This makes lithium expensive which in turn makes the EV batteries a very costly part on an electric vehicle.
This will Reduce The Cost Of EVs
Cutting down our dependency on importing lithium or EV batteries by using our own reserves will reduce the cost of making EV batteries.
Cheaper batteries means lower input costs for EVs, and the car manufacturers will pass on the benefit to buyers by making EVs more affordable without a range compromise.
Right now, EVs carry a massive premium compare to their ICE (internal combustion engine) alternatives.
This will Increase Battery Production
There should be an uptake in battery production as well with new businesses joining the fray.
We will be able to rapidly increase up the production of EV batteries in the country.
This would lead to a significant increase in the production of electric cars as well and we would see a lot more EVs on the roads.
India become An Exporter
India is not the only country dependent on lithium imports and by managing the newfound reserves, it can become an exporter to those countries.
By positioning as an alternative to the current top exporters of battery-grade lithium like China, Chile or Australia, could create another source of income for the country and help boost the economy.
This will make Quicker Transition Towards Sustainability
The main reason for the world’s shift towards electric alternative energies is to reduce the dependence on depleting oil reserves.
Other advantage is that it will help reduce the pollution generated by everything that uses fossil fuels for operating, by running on electricity.
Conclusion
If the Indian industry can achieve all of the above uses of these lithium reserves in a responsible manner, it could huge boost for our progress towards a sustainable future.
The success of the above mantion goals is no easy task.
The reserves we have found need to be handle responsibly and use with utmost care, as lithium is also a precious and finite natural resource.
It will also take time to mine and convert into a usable quality and should be done in an eco-conscious and efficient manner.
Only then will India be able to become one of the leading automobile manufacturing hubs in the world.
Rahul Ram Dwivedi (RRD) is a senior journalist in 2YoDoINDIA.
NOTE : Views expressed are personal.
