Lok Sabha Question No. 1711 (UNSTARRED), answered on 2023-12-13
Subject: Lithium Production
Ministry: MINES
Asked by: Kani K. Navas

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## UNSTARRED QUESTION NO. 1711

ANSWERED ON 13.12.2023

## LITHIUM PRODUCTION

1711. SHRI K. NAVASKANI:

Will the Minister of MINES be pleased to state:

- (a) whether the Government is cognizant that most of the lithium needed (estimated 2 million tons by 2040) for manufacturing new electric vehicles and grid-scale battery storage systems could be produced domestically using newly discovered reserves; and
- (b) if so, the details of the steps that are proposed to be taken by the Government in this regard?

## ANSWER

## THE MINISTER OF MINES, COAL AND PARLIAMENTARY AFFAIRS (SHRI PRALHAD JOSHI)

- (a) & (b): Yes, Sir. In order to boost the domestic supply of critical minerals such as lithuim, the Central Government has amended the Mines and Minerals (Development and Regulation) Act, 1957 through the MMDR Amendment Act, 2023 with effect from 17.08.2023.

Through the said amendment, the Central Government has been empowered to exclusively auction mining lease and composite licence for 24 critical minerals listed in the new Part-D of the First Schedule to the said Act which includes lithium. The objective  of  the  said  amendment  is  to  increase  exploration  and  mining  of  critical minerals and ensure self-sufficiency in supply of critical minerals which are essential for the advancement of many sectors, including high-tech electronics, telecommunications, transport, and defence. They are also vital to power the transition to a low-emission economy, and the renewable technologies that will be required to meet the 'Net Zero' commitment of India by 2070.

The  auction  of  critical  and  strategic  minerals  brings  several  key  benefits, including  bolstering  domestic  production,  reducing  import  dependency,  promoting sustainable resource management, attracting investments in the mining sector and the development  of key industries crucial for India's industrial and  technological advancement. This is a step towards creating a reliable supply chain of these mineral and  making  an  'AtmaNirbhar  Bharat'  and  contribute  towards  increased  economic growth.

The  Central  Government  has  launched  the  first  tranche  of  e-auction  of  20 mineral  blocks  of  critical  and  strategic  minerals  on  29.11.2023  which  includes  two blocks  of  lithium  and  associated  minerals  for  grant  of  composite  licence  which  on completion of G2 level of exploration followed by production aims to ensure steady supply of these minerals, thus reducing our reliance on imports and ensuring a more secure and resilient supply chain.

Besides  auction  of  critical  minerals  by  the  Central  Government,  in  order  to further  boost  exploration  of  critical  and  deep-seated  minerals,  a  new  mineral concession namely, exploration licence has been introduced for 29 critical and deepseated minerals. Critical and deep-seated minerals such as Cobalt, Lithium, Nickel, Gold, Silver, Copper are difficult to explore and mine as compared to surfacial or bulk minerals.  The  country  is  mostly  dependent  on  imports  of  these  minerals.  The exploration  licence  granted  through  auction  shall  permit  the  licencee  to  undertake reconnaissance  and  prospecting  operations  for  critical  and  deep-seated  minerals mentioned in the newly inserted Seventh Schedule to the MMDR Act.

Exploration license aims to create an enabling mechanism wherein the Junior Mining  Companies  will  bring  in  expertise  from  across  the  world  in  acquisition, processing and interpretation of exploration data and leverage the risk-taking ability in discovery of deep-seated mineral deposits through adoption of expertise and latest technologies.

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