India to auction Jammu and Kashmir lithium reserves in few weeks, according to government source

Jammu and Kashmir, India’s federally managed area, will sell off its lithium deposits in the coming weeks, according to a government source familiar with the situation.

India, which has been looking into methods to secure supply of lithium, a vital raw element needed in the production of electric car batteries, discovered its first lithium deposits in Jammu and Kashmir in February, with estimated reserves of 5.9 million tonnes.

“The auction will happen soon and some overseas miners have shown interest,” the source said, declining to be identified because of the sensitive nature of discussions.

The federal mines ministry did not immediately reply to a Reuters email seeking comments.

The source also said that KABIL, a state-owned joint venture formed to scout for minerals overseas, was in the “final stages” of securing a few lithium blocks in Argentina.

Discussions with the Chilean government were also underway to secure lithium blocks although talks were still in the early stages, the source added.

KABIL, short for Khanij Bidesh India Ltd, was formed in August 2019 to identify, acquire, develop and process strategic minerals overseas for use in India.

India, among the world’s top greenhouse gas emitters, has been pursuing overseas pacts to secure key minerals in resource-rich countries such as Australia, Argentina and Chile.