Media won’t tell you this about Lithium Reserves found in Jammu & Kashmir | Lithium Ion Battery
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The news about massive lithium reserves found in India, specifically 5.9 Million tonnes of lithium reserves in Jammu and Kashmir, has been making headlines recently. This is a big discovery considering the importance of lithium and lithium-ion batteries. But this is not complete or comprehensive information. In this video, I covered why lithium reserves in Jammu Kashmir should not be celebrated so early. Also, how lithium in Kashmir can be great news for India only after certain other procedures and steps are taken in time.
First of all the lithium reserves in J&K are as of now termed inferred resources or G3 resources. These terms are important. Because inferred resources mean, according to the international standards of Crisco, that the confidence in the quality and quantity of the resources found is very limited. Also, there is no economic viability attached to it. Only when it moves from inferred to indicated and then measured, we can be sure about the presence and economic viability of any discovered reserves. Moving into the 2nd and 3rd stages isn’t certain. About 1,600 tonnes of lithium resources were found in Karnataka in the past but there is no news about those as of now.
G3 indicates a low level of confidence with respect to the quality and quantity of the discovered reserves. G2 indicates a moderate level of confidence while G1 represents a high level of confidence. This discovery is making headlines because lithium is a rare earth metal. If we look at lithium reserves in the world then Chile leads the pack with 9.3 Million tonnes of lithium reserves, Australia has 6.2 million tonnes of lithium reserves, and if India is able to materialize this discovery then it will become the country with the third largest lithium reserves in the world. But as of now, Argentina has the third largest lithium reserves with 2.7 Million tonnes.
Lithium is very useful because of its use in Lithium-ion batteries. Lithium-ion batteries are special because of their weight efficiency and volume efficiency. Lithium-ion batteries are thus better than all other rechargeable batteries. That’s why these weight-efficient and volume-efficient batteries are the best batteries for smartphones and EVs. More reserves of lithium may make India self-sufficient in terms of Lithium imports. India has imported $1.7 worth of lithium batteries in 2021. This will also save India’s forex reserves.
The EV industry can be massively boosted by this. But there are environmental concerns and costs associated with the extraction and refining of lithium. During the lithium extraction and lithium refining process, about 170 tonnes of water will be used for 1 ton of lithium. In the process, we will also emit 15 tonnes of CO2. This means that CO2 will be emitted in both cases. This is why until the extraction process becomes sophisticated enough, there is not much reason to celebrate. But if this happens there are many positives for India. One is the developing of lithium manufacturing processes in India and decreasing reliance on China. At the end of the video, I’ve shared two important takeaways for business students and aspiring entrepreneurs.
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I publish meaningful and valuable content on this channel. My aim is to make business news more accessible and easy to grasp. If you find my videos informative and insightful then make sure to subscribe and leave a comment. I’ll see you in the next video
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Chapters
0:00 - Intro
0:30 - What are inferred resources?
1:57 - What is G3?
2:24 - Importance of Lithium
3:08 - Uses of Lithium
4:34 - Lithium Imports
5:04 - EV Boost
5:39 - Environmental concerns
7:06 - 2 big positives
7:40 - Takeaways
8:38 - Outro