India to open its 1st lithium mines in Chhattisgarh after GSI confirmation

India is set to open its first lithium mines in the Katghora region of Korba district, Chhattisgarh, following the Geological Survey of India (GSI) confirming significant lithium reserves, according to a report by Times of India.

The announcement was made during the sixth governing body meeting of the National Mineral Exploration Trust in New Delhi. The GSI reported lithium concentrations ranging from 10 to 2,000 parts per million (PPM) over approximately 250 hectares, with the possibility of even higher concentrations.

Union Minister G Kishan Reddy chaired the meeting, which focused on the extraction and utilisation of minerals while also considering environmental conservation, the report stated. State health minister Shyam Bihari Jaiswal attended the meeting on behalf of Chief Minister Vishnu Deo Sai.

 

TOI quoted Jaiswal as saying that the opening of the lithium mine in Chhattisgarh would position the state as a key contributor to India's goal of becoming a developed nation by 2047.

Tender notice issued for allocation

The Ministry of Mines has issued a Notice Inviting Tender (NIT) on the Metal Scrap Trade Corporation (MSTC) portal for the allocation of 20 blocks containing critical and strategic minerals across various states, including Bihar, Gujarat, Jharkhand, Odisha, Tamil Nadu, Uttar Pradesh, Jammu and Kashmir, and Chhattisgarh. These blocks will be allocated through an e-auction process, reported TOI.

Among these 20 blocks is the lithium and Rare Earth Element (REE) block in the Katghora area. Preliminary surveys by the GSI revealed lithium concentrations between 10 and 2,000 PPM in an area of about 250 hectares, which also contains rare earth elements.

Critical and strategic minerals are essential for sectors like renewable energy, defence, agriculture, pharmaceuticals, high-tech electronics, telecommunications, and transportation. Currently, India relies heavily on imports for these minerals.

Lithium, one of the 23 proposed exploration projects, is considered crucial for producing lithium-ion batteries used in electric vehicles, which are in increasing demand. In 2023-24, Chhattisgarh's mineral revenue surged to approximately Rs 13,000 crore, nearly 30 times higher than at the state's formation, the national daily noted.

Incentives announced for critical minerals

Earlier today (August 14), Veena Kumari Dermal, Joint Secretary in the Ministry of Mines, stated that the Centre plans to offer financial incentives to boost the development of critical minerals like lithium.

The initiative aims to foster self-reliance in the critical minerals industry and reduce the country's heavy dependence on imports. The incentives will include funding for research institutes to provide technical support to miners.

This initiative could be valued at up to $50 million. This development follows earlier efforts to advance the sector, which did not yield the desired outcomes. In June, the Centre granted development rights for a lithium block in Chhattisgarh, but a similar effort in Jammu and Kashmir did not attract interest due to financial feasibility concerns.